WASHINGTON (Reuters) - U.S. wholesale inventories rebounded solidly in February, suggesting that inventories could contribute to economic growth in the first quarter.
The Commerce Department's Census Bureau said on Wednesday that wholesale inventories rose 0.5% as estimated last month. Stocks at wholesalers fell 0.2% in January. Economists polled by Reuters had expected that inventories would be unrevised.
Inventories are a key part of gross domestic product. They dropped 1.5% on a year-on-year basis 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 2.5% pace.
Wholesale motor vehicle inventories rose 0.9%. There were increases in stocks of lumber and professional equipment as well as metals and machinery. But stocks of farm products and petroleum fell. Excluding autos, wholesale inventories increased 0.5% in February. This component goes into the calculation of GDP.
Sales at wholesalers rose 2.3% after declining 1.4% in January. February's sales pace it would take wholesalers 1.34 months to clear shelves, down from 1.36 months in January.