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US wholesale inventories rebound in December

Published 02/08/2024, 10:29 AM
Updated 02/08/2024, 11:01 AM
© Reuters. 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.

© Reuters. FILE PHOTO: Inventory is seen inside the Amazon fulfillment center in Robbinsville, New Jersey, U.S., November 26, 2018. REUTERS/Shannon Stapleton/File Photo

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.

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