© Reuters. Warehouse workers handle inventory stacked to the ceiling at an ABT Electronics facility in Glenview, Illinois, US on December 4, 2018. Photo taken on December 4, 2018. REUTERS/Richa Naidu/File PhotoWASHINGTON (Reuters) – U.S. business inventories rebounded in December, driven by rising inventories at retailers and wholesalers.
The Commerce Department's Census Bureau said Thursday that business inventories rose 0.4% after falling 0.1% in November. The increase in inventories, a major component of gross domestic product, was in line with economists' expectations. Inventories rose 0.4% year over year in December.
Private inventory investments added 0.1 percentage point to the economy's 3.3% annual growth pace in the fourth quarter after providing a big boost in the July-September period.
Retail inventories rose 0.6% in December, instead of the 0.8% estimated in an advance report published last month. It did not change in November.
Car inventories rose by 1.3%, instead of 1.2% as expected last month. It rose 2.0% in November.
Retail inventories excluding automobiles, which are included in the GDP calculation, rebounded 0.4%. They were previously reported to be 0.6% ahead. It fell by 0.8% in November.
Wholesale inventories rose 0.4%, while manufacturers inventories rose 0.1%.
Business sales rose 0.4% in December after remaining unchanged in November. At the pace of sales in December, it will take 1.37 months for companies to clear shelves, unchanged from November.
