Tags: US Wholesale Businesses Boost Stockpiles 0.8 Percent

Wholesale Inventories Rise Solidly, May Boost Fourth-quarter GDP

Friday, 09 Jan 2015 11:46 AM

U.S. wholesale inventories recorded their largest increase in seven months in November and October's stocks were revised higher, suggesting restocking may boost fourth-quarter growth.

The Commerce Department said on Friday wholesale inventories rose 0.8 percent, despite an energy price-related decline in the value of petroleum stocks. October's wholesale stocks were revised up to show a 0.6 percent gain.

Wall Street had expected wholesale inventories to rise only 0.3 percent in November following a previously reported 0.4 percent increase in October.

Inventories are a key component of gross domestic product changes. The component that goes into the calculation of GDP - wholesale stocks excluding autos - rose 0.8 percent.

Coming on the heels of a smaller-than-expected trade deficit in November, that could see economists further raising their fourth-quarter GDP estimates.

Growth forecasts were pushed up by at least 0.8 percentage point to as high as a 3.5 percent annualized pace following the trade report on Wednesday.

The economy grew at a 5.0 percent pace in the third quarter, with inventories being neutral. Economists have been expecting restocking to be a drag to growth in the final three months of 2014.

Stocks at wholesalers in November were lifted by an increase in inventories of electrical goods, machinery, hardware, metals and professional equipment. Auto inventories rose 0.6 percent.

Sales at wholesalers fell 0.3 percent in November after being flat the prior month. At November's sales pace it would take 1.21 months to clear shelves, up from 1.20 months in October.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Economy
U.S. wholesale inventories recorded their largest increase in seven months in November and October's stocks were revised higher, suggesting restocking may boost fourth-quarter growth.
US Wholesale Businesses Boost Stockpiles 0.8 Percent
247
2015-46-09
Friday, 09 Jan 2015 11:46 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved