U.S. business inventories increase strongly in October
Source: Reuters, via Yahoo! Finance
Reuters
U.S. business inventories increase strongly in October
Wed, December 15, 2021, 10:23 AM
WASHINGTON (Reuters) - U.S. business inventory accumulation increased strongly in October, suggesting that restocking could again support economic growth this quarter even as motor vehicle inventories remain depressed because of shortages.
Business inventories rose 1.2% after gaining 0.8% in September, the Commerce Department said on Wednesday. Inventories are a key component of gross domestic product.
Economists polled by Reuters had forecast inventories rising 1.1%. Inventories increased 7.8% on a year-on-year basis in October. Retail inventories edged up 0.1% in October as estimated in an advance report published last month. That followed a 0.1% dip in September. Motor vehicle inventories decreased 1.0% instead of 0.7% as estimated last month.
Retail inventories excluding autos, which go into the calculation of GDP, increased 0.5%, rather than 0.4% as estimated last month.
A moderate pace of inventory drawdown in the third quarter accounted for all of the 2.1% annualized rise in GDP last quarter. Inventories were depleted in the first half of the year, and COVID-19 pandemic-related shortages are making it difficult to rebuild stocks.
The urgent need to restock is keeping manufacturing humming and supporting the overall economy.
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(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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