U.S. Wholesale Inventories Soar in December, Suggesting a Recovery

By: Tomas Ronolski - AllPennyStocks.com News

Friday, February 9, 2024

Wholesale inventories are the stock of unsold goods held by wholesalers and are a key component of gross domestic product changes. A high inventory points to the economic slowdown in the U.S., while a low reading points to stronger growth. For December, wholesale inventories rallied

The rebound in December was driven by durable goods, helped by a surge in motor vehicle stocks — specifically automotive inventories, machinery, and computer equipment. In contrast, nondurable goods declined slightly. According to the Commerce Department's Census Bureau, wholesale inventories increased 0.4 percent in December, following a 0.4 percent decline in November.

As a key part of gross domestic product, wholesale inventories fell 2.7 percent on a year-on-year basis in December. Private inventory investment added 0.1 percentage point to the economy's 3.3 percent annualized growth pace in the fourth quarter after providing a large boost in the July-September quarter. Per the ratio of inventories to sales, which suggests how many months' worth of stock wholesalers have at current sales rates, was 1.34 in December, down from 1.40 in the same period in the year prior.

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