🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

US business inventories pick up in February

Published 04/15/2024, 10:19 AM
Updated 04/15/2024, 10:22 AM
© Reuters. FILE PHOTO: An automobile dealership uses racks to store its inventory of vehicles in Los Angeles, California, U.S. January 29, 2024.  REUTERS/Mike Blake/File Photo

WASHINGTON (Reuters) - U.S. 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% after being unchanged in January, the Commerce Department's Census Bureau on Monday. The pick up in inventories, a key component of gross domestic product, was in line with economists' expectations.

Inventories advanced 1.0% year-on-year in February.

Private inventory investment cut 0.47% 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% annualized rate in the October-December quarter. Growth estimates for the first quarter are currently as high as a 2.7% pace.

Retail inventories increased 0.6% in February, instead of 0.5% as estimated in an advance report published last month. They rose 0.4% in January. Motor vehicle inventories climbed 0.8%, rather than 0.9% as previously estimated. They gained 0.8% in January.

© Reuters. FILE PHOTO: An automobile dealership uses racks to store its inventory of vehicles in Los Angeles, California, U.S. January 29, 2024.  REUTERS/Mike Blake/File Photo

Retail inventories excluding autos, which go into the calculation of GDP, increased 0.4% as reported last month. They rose 0.3% in January. Wholesale inventories increased 0.5% in February, while stocks at manufacturers gained 0.3%.

Business sales rebounded 1.6% in February after falling 1.0% in January. At February' sales pace, it would take 1.38 months for businesses to clear shelves, down from 1.39 months in January.

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.