U.S. business inventories rose in August, boosted by a larger increase in stocks at retailers than previously estimated, supporting views that inventory investment will contribute to economic growth in the third quarter.

The Commerce Department said on Friday business inventories increased 0.2 percent after being unchanged in July.

August's rise in inventories, a key component of gross domestic product, was in line with economists' expectations.

Retail inventories increased 0.6 percent in August, instead of rising 0.5 percent as reported in an advance report published last month. They fell 0.2 percent in July.