Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. business inventories increase further in September

Published 11/17/2020, 10:36 AM
Updated 11/17/2020, 10:40 AM
© Reuters. An overview of the product prep area of the Amazon fulfilment center is seen in Baltimore

© Reuters. An overview of the product prep area of the Amazon fulfilment center is seen in Baltimore

WASHINGTON (Reuters) - U.S. business inventories increased slightly more than expected in September, likely as wholesalers and businesses stocked up for the holiday season, which could help to support economic growth in the fourth quarter.

Business inventories rose 0.7% in September after gaining 0.3% in August, the Commerce Department said on Tuesday. Inventories are a key component of gross domestic product. Economists polled by Reuters had forecast business stocks to advance 0.6% in September.

Retail inventories surged 1.7% in September instead of 1.6% as estimated in an advance report published last month. That followed a 0.5% increase in August. Motor vehicle inventories accelerated 3.1%, rather than 3.2% as previously reported.

Retail inventories excluding autos, which go into the calculation of GDP, increased 1.1% instead of 0.9% as estimated last month.

Inventories contributed to a historic 33.1% annualized rate of growth in GDP in the third quarter. That followed a 31.4% rate of contraction in the second quarter, the deepest since the government started keeping records in 1947. Inventories had been a drag on GDP for five straight quarters.

Wholesale inventories rose 0.4% in September. Stocks at manufacturers were unchanged.

© Reuters. An overview of the product prep area of the Amazon fulfilment center is seen in Baltimore

Business sales increased 0.6% in September after rising 0.9% in August. At September's sales pace, it would take 1.32 months for businesses to clear shelves, unchanged from August.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.