© Reuters. Warehouse workers deal with inventory stacked up to the ceiling at an ABT Electronics Facility in Glenview, Illinois, U.S. December 4, 2018. Picture taken December 4, 2018. REUTERS/Richa Naidu/File Photo
WASHINGTON (Reuters) – U.S. business inventories rebounded in December, driven by rising stocks at retailers and wholesalers.
Business inventories rose 0.4% after falling 0.1% in November, the Commerce Department’s Census Bureau said on Thursday. The increase in inventories, a key component of gross domestic product, was in line with economists’ expectations. Inventories advanced 0.4% 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 period.
Retail inventories increased 0.6% in December, instead of the 0.8% estimated in an advance report published last month. They were unchanged in November.
Motor vehicle inventories increased 1.3%, rather than 1.2% as estimated last month. They rose 2.0% in November.
Retail inventories excluding autos, which go into the calculation of GDP, rebounded 0.4%. They were previously reported to have advanced 0.6%. They fell 0.8% in November.
Wholesale inventories rose 0.4%, while stocks at manufacturers increased 0.1%.
Business sales gained 0.4% in December after being unchanged in November. At Decembers’ sales pace, it would take 1.37 months for businesses to clear shelves, unchanged from November.