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WASHINGTON (Reuters) – U.S. inventories climbed in November as rising interest rates dragged down sales and pushed the inventory-to-sales ratio to a two-year high.
Business inventories rose 0.4% after rising 0.2% in October, according to the Department of Commerce. Inventory is an important component of gross domestic product.
Inventory increases in November were in line with economists’ expectations. Inventory in November increased by 15.1% year-on-year.
The pace of inventory build-up has slowed significantly from the strong pace seen in late 2021 and early 2022. This is because the Federal Reserve has aggressively raised interest rates to curb inflation, thus improving supply and reducing demand for commodities.
Retail inventories recovered 0.1% in November, as estimated in a preliminary report released last month. They fell 0.4% in October. Improvements in supply and a shift in spending on services have created a surplus of merchandise for retailers, forcing some retailers to offer discounts or withhold orders until they have cleared unnecessary inventory. increase.
Vehicle inventories increased by 1.1% compared to last month’s estimated 1.2%. They increased by 0.4% in October. Retail inventories, excluding cars, used to calculate GDP, fell by 0.3% last month, he estimated.
Wholesale inventories increased by 1.0% in November. The manufacturer’s inventory remains unchanged.
Inventories have dragged down GDP for the second straight quarter, contracting more than 1% in the July-September quarter. The economy grew at an annualized rate of 3.2% in the third quarter. Growth forecast for the fourth quarter he has reached a pace of 4.1%.
Corporate sales fell 0.8% in November after rising 0.4% in October. At November’s sales pace, it would take companies 1.35 months to clear their shelves. This is his longest since December 2020, up from 1.33 months in October.
Reported by Lucia Mutikani.Edited by Andrea Ricci
Our standards: Thomson Reuters Trust Principles.
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