U.S. business inventories rise solidly in February
15/04/2021 15:23
WASHINGTON, April 15 (Reuters) - U.S. business inventories
increased solidly in February, suggesting restocking could again
contribute to economic growth in the first quarter.
Business inventories rose 0.5% after increasing 0.4% in
January, the Commerce Department said on Thursday. Inventories
are a key component of gross domestic product. February's gain
was in line with economists' expectations.
Inventories fell 2.4% on a year-on-year basis in February.
Retail inventories were unchanged in February as estimated
in an advance report published last month. That followed a ‐0.3%
decline in January.
Motor vehicle inventories decreased fell 2.6% as previously
reported. Motor vehicle stocks are dwindling as a global
semi-conductor shortage hampers auto production.
Retail inventories excluding autos, which go into the
calculation of GDP, increased 1.2% as estimated last month. That
followed a 0.2% gain in January. Inventory investment has
contributed to GDP growth for two straight quarters.
Growth estimates for the first quarter are as high as a 9.7%
annualized rate. The economy grew at a 4.3% rate in the fourth
quarter. Growth this year is expected to top 7.0% this year,
which would be the fastest since 1984 and would follow a 3.5%
contraction last year, the worst performance in 74 years.
Wholesale inventories rose 0.6% in February. Stocks at
manufacturers jumped 0.8%.
Business sales fell 1.9% in February after rising 4.5% in
January. At February's sales pace, it would take 1.30 months for
businesses to clear shelves, up from 1.27 months in January.
(Reporting by Lucia Mutikani
Editing by Bernadette Baum)
((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters
Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))