US business inventories pick up in February
US BUSINESS inventories rose in February amid strong gains at retailers and wholesalers, suggesting that inventory investment could contribute to economic growth in the first quarter.
Inventories increased 0.4 per cent after being unchanged in January, the Commerce Department’s Census Bureau on Monday (Apr 15). The pickup in inventories, a key component of gross domestic product, was in line with economists’ expectations.
Inventories advanced 1.0 per cent year-on-year in February.
Private inventory investment cut 0.47 per cent percentage point from GDP growth in the fourth quarter after providing a big boost in the third quarter. The economy grew at a 3.4 per cent annualised rate in the October-December quarter. Growth estimates for the first quarter are currently as high as a 2.7 per cent pace.
Retail inventories increased 0.6 per cent in February, instead of 0.5 per cent as estimated in an advance report published last month. They rose 0.4 per cent in January. Motor vehicle inventories climbed 0.8 per cent, rather than 0.9 per cent as previously estimated. They gained 0.8 per cent in January.
Retail inventories excluding autos, which go into the calculation of GDP, increased 0.4 per cent as reported last month. They rose 0.3 per cent in January. Wholesale inventories increased 0.5 per cent in February, while stocks at manufacturers gained 0.3 per cent.
Business sales rebounded 1.6 per cent in February after falling 1.0 per cent in January. At February’ sales pace, it would take 1.38 months for businesses to clear shelves, down from 1.39 months in January. REUTERS
Share with us your feedback on BT's products and services
