WASHINGTON (Reuters) – U.S. wholesale inventories fell 0.2% in November, as initially estimated last month, amid sharp declines in stocks of long-lasting manufactured goods like motor vehicles and computer equipment.
Stocks at wholesalers were unchanged in October, the Commerce Department’s Census Bureau said on Wednesday. Economists polled by Reuters had expected the drop in inventories, a key part of gross domestic product, would be unrevised at 0.2%.
Inventories increased 0.8% on a year-on-year basis in November.
Monthly wholesale inventories could rebound in the months ahead as businesses fearful of higher tariffs front-load imports. Goods imports surged 4.3% in November, government data showed on Tuesday. President-elect Donald Trump has pledged to impose or massively raise tariffs on imports.
Durable goods inventories decreased 0.4% in November after easing 0.1% in October. Motor vehicle inventories declined 2.2% while those of computer equipment fell 1.3%. There were also decreases in stocks of machinery.
Nondurable goods inventories rose 0.2% as a 4.5% plunge in farm products was more than offset by increases in groceries, apparel, petroleum and alcohol.
Excluding motor vehicles, wholesale inventories gained 0.1%. This category goes into the calculation of GDP.
Private inventory investment was a small drag on GDP in the third quarter. The economy grew at a 3.1% annualized rate in the July-September quarter.
Sales at wholesalers rebounded 0.6% in November after falling 0.3% in October. They were lifted by a 1.5% jump in durable goods. Sales of nondurable goods fell 0.3%.
At November’s sales pace it would take wholesalers 1.33 months to clear shelves, down from 1.34 in October.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
Comments