US wholesale inventories rebound in December
FILE PHOTO: Inventory is seen inside the Amazon fulfillment center in Robbinsville, New Jersey, U.S., November 26, 2018. REUTERS/Shannon Stapleton/File Photo
WASHINGTON (Reuters) — U.S. wholesale inventories rebounded in December, the government confirmed on Thursday, boosted by a surge in motor vehicle stocks.
The Commerce Department’s Census Bureau said wholesale inventories increased 0.4% as estimated last month. Stocks at wholesalers declined 0.4% in November. Economists polled by Reuters had expected that inventories would be unrevised.
Inventories are a key part of gross domestic product. They fell 2.7% on a year-on-year basis in December. Private inventory investment added 0.1 percentage point to the economy’s 3.3% annualized growth pace in the fourth quarter after providing a large boost in the July-September quarter.
Wholesale motor vehicle inventories accelerated 2.9% in December after dropping 2.0% in November. There were also increases in wholesale stocks of professional and computer equipment as well as machinery, paper and medication. But stocks of furniture, apparel and petroleum declined.
Excluding autos, wholesale inventories edged up 0.1% in December. This component goes into the calculation of GDP.
Sales at wholesalers rose 0.7% after dipping 0.1% in November. At December’s sales pace it would take wholesalers 1.34 months to clear shelves, unchanged from November.
