The US business inventory fell for the first time in nine months in December because of a strong domestic demand thinning stock in retailers and wholesale traders.
Inventory fell 0.2%, the first decline since March, after getting 0.1% in November, the Department of Trade Census Bureau said on Friday.
Economists surveyed by Reuters have estimated the inventory, the key component of the gross domestic product, did not change.
Inventory increases 2.0% every year in December. Inventory is the most unstable GDP component. Private inventory investment is a major obstacle to GDP in the fourth quarter, limiting economic growth to an annual level of 2.3%. The economy grew at a speed of 3.1% in the July-September quarter
Retail inventory decreased by 0.4% than 0.3%, as expected in the face report issued last month. They rose 0.1% in November.
Motor vehicle inventory fell 1.1%, not 1.2% reported previously. They fell 0.8% in November.
Retail inventory does not include autos, which is included in the GDP calculation, slipping 0.1%, instead of increasing 0.2% as previously reported. They increased 0.6% in November.
Wholesale inventory decreased 0.5% in December, while shares in producers increased 0.4%.
Business sales increased 0.8% in December after rising 0.6% in November. At December sales speed, it takes 1.35 months for businesses to clean shelves, down from 1.37 months in November.
Source: Reuters
