Unexpectedly Flat US Business Inventories in January
Retailers Boost Stocks, Manufacturers and Wholesalers Decline
U.S. business inventories remained unchanged in January, defying expectations of a 0.2% increase. The Commerce Department’s Census Bureau revealed that while retailers saw a rise in stocks, manufacturers and wholesalers experienced declines.
Private Inventory Investment Impact on GDP Growth
Private inventory investment subtracted 0.3 percentage points from GDP growth in the last quarter, contrasting with a significant boost provided in the previous quarter. The economy grew at a 3.2% annualized rate in the October-December period, with first-quarter growth estimates converging around a 2.0% pace.
Retail and Motor Vehicle Inventories
Retail inventories increased by 0.4% in January, slightly lower than the 0.5% estimated earlier. Motor vehicle inventories climbed by 0.8%, consistent with previous estimations. Retail inventories excluding autos, crucial for GDP calculations, increased by 0.3%.
Wholesale and Manufacturer Inventory Changes
Wholesale inventories dropped by 0.3% in January, while stocks at manufacturers dipped by 0.1%. These changes have implications for overall business sales and economic indicators.
Business Sales and Inventory Clearing
Business sales declined by 1.3% in January after remaining unchanged in December. The pace at which businesses can clear shelves increased slightly to 1.39 months in January, up from 1.38 months in the previous month.
