Wall Street economists expect government data to be released Tuesday will show wholesale inventories rose at a slower pace in May than the previous month, as companies seek to reduce stockpiles.

The Commerce Department is scheduled to release its monthly wholesale trade report, based on a survey of about 4,500 companies, at 10 a.m. EDT. Wholesale inventories are goods held by distributors who generally buy from manufacturers and sell to retailers.

Wall Street expects the report to show inventories grew 0.7 percent in May, compared with 1.3 percent in April, according to a survey of economists by Thomson Financial/IFR.

Wholesale sales, also are projected to have grown 0.7 percent in May, half of the previous month's 1.4 percent growth.

Economists at Lehman Brothers attributed the higher inventory growth in April to a 2.5 percent jump in auto inventories, which "looks unsustainable."

U.S. auto makers are struggling with steep drops in sales as U.S. consumers cut back on auto purchases in the face of high gas prices.

The industry saw U.S. sales drop 18.3 percent in June, with General Motors Corp.'s sales dropping 18.2 percent, Ford Motor Co.'s falling 27.9 percent, Chrysler LLC's plummeting by almost 36 percent, and Toyota Motor Co.'s falling by 21.4 percent.

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