WASHINGTON – American businesses experienced a modest increase in their stockpiled goods during December, according to federal data released Friday by the Commerce Department’s Census Bureau.
The nation’s business inventory levels climbed 0.1% last month, marking the first uptick after remaining flat in November. This slight growth met predictions from economic analysts.
When compared to the same period last year, business stockpiles showed a more substantial 1.6% increase in December. These inventory figures represent a crucial element in calculating the nation’s gross domestic product, though they tend to fluctuate significantly.
The data release experienced delays due to the federal government shutdown that occurred last year. Previous government reports indicated that business inventories had fallen for three consecutive quarters during the final months of the year, although the rate of decline had been slowing.
These inventory changes contributed 0.21 percentage points to the nation’s 1.4% annualized economic growth rate during the October through December period.
Retail businesses saw their stockpiles recover by 0.1% in December, bouncing back from a 0.4% drop the previous month. Meanwhile, wholesale operations recorded a 0.2% inventory gain, and manufacturing companies increased their stock levels by 0.1%.
Business sales activity strengthened by 0.5% in December, following a 0.6% increase in November. However, retail sales remained unchanged during the month. At the current sales rate, companies would need approximately 1.36 months to completely sell through their existing inventory, an improvement from the 1.37 months required in November.
