WASHINGTON, (Reuters) – U.S. business inventories increased steadily in August. However, motor vehicle retailers continue to have difficulty restocking amid a global semiconductor shortage that is forcing automakers to reduce production.

The Commerce Department reported Friday that business inventories increased 0.6% in August after an identical gain in July. Gross domestic product is mainly determined by inventories. The August increase was consistent with economists’ expectations.

August saw inventories rise 7.4% over a 12-month period. According to an advance report last month, retail inventories increased 0.1% in August. This follows a 1.4% increase in July. According to last month’s estimates, motor vehicle inventories fell 1.4% rather than 1.5%.

As per last month’s estimates, retail inventories (excluding autos), rose 0.6%.

The first half of this year saw business inventories drop. But, due to the persistent supply bottlenecks caused by the COVID-19 Pandemic and congestion at US ports in China and America, there is a challenge rebuilding stocks.

The third-quarter estimates of GDP growth have been slashed from an estimated 7% to as little as 1.3%. 2.7% was the pace of economic growth in the second quarter.

In August, wholesale inventories grew 1.2%. Manufacturer stocks rose 0.6%

After increasing 0.5% in July, August’s business sales fell 0.1%. It would take businesses 1.26 months to clear their shelves at August’s pace of sales, down from 1.25 in July.