U.S. business inventories rise solidly in December
17/02/2021 15:18
WASHINGTON, Feb 17 (Reuters) - U.S. business inventories
increased solidly in December, with stocks at retailers larger
than initially estimated.
Business inventories rose 0.6% in December after gaining
0.5% in November, the Commerce Department said on Wednesday.
Inventories are a key component of gross domestic product.
Economists polled by Reuters had forecast inventories rising
0.5% in December. Inventories fell 2.6% on a year-on-year basis
in December.
Retail inventories increased 1.2% in December, instead of
1.0% as estimated in an advance report published last month.
That followed a 0.7% rise in November. Motor vehicle inventories
increased 1.1%, rather than 0.9% as previously reported.
Retail inventories excluding autos, which go into the
calculation of GDP, gained 1.2%, instead of 1.1% as estimated
last month.
The economy grew at a 4.0% annualized rate in the fourth
quarter after a historic 33.4% growth pace in the third quarter.
Inventories contributed to GDP growth for two straight quarters.
Businesses are replenishing inventories after they were
drawn down early in the pandemic. That has helped to underpin
manufacturing, offsetting slowing consumer spending.
Wholesale inventories rose 0.3% in December. Stocks at
manufacturers also gained 0.3%.
Business sales jumped 0.8% in December after being unchanged
in November. At December's sales pace, it would take 1.32 months
for businesses to clear shelves, unchanged from November.
(Reporting by Lucia Mutikani
Editing by Chizu Nomiyama)
((Lucia.Mutikani@thomsonreuters.com;1(202) 843-6281; Reuters
Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))