US business inventories increase less than expected in November

WASHINGTON, Feb 10(Reuters) - ⁠U.S. business inventories ⁠increased ‍less than expected in November as stocks at retailers fell, government data showed on Tuesday.

Inventories ‍rose 0.1% after gaining 0.2% in October, the ​Commerce Department's Census Bureau said on Tuesday. Inventories are a key ​component of GDP and one of the most volatile.

Economists polled by Reuters had forecast inventories gaining 0.2%. They increased 1.2% on a year-over-year ​basis in November. The report was delayed by last year's shutdown of federal government.

Retail inventories slipped 0.1% ​in November after rising 0.5% in October. Motor vehicle inventories fell 0.9%. That ‌followed a 1.0% increase in October.

Retail inventories excluding autos, which go into the calculation of ​GDP, rose 0.2% after a similar ⁠gain in the prior month. Wholesale inventories increased 0.2% in November while stocks at ‌manufacturers edged up 0.1%.

Business inventories have declined for two straight quarters, subtracting from GDP growth. The drag was, however, more than ‌offset by a shrinking trade deficit during that period. The Atlanta ‌Federal Reserve is currently forecasting GDP will increase at a 4.2% annualized rate in the fourth quarter. The economy grew at a ‍4.4% pace in the July-September quarter.

Business sales increased 0.6% in November after declining 0.2% ⁠in October. Sales at retailers increased 0.5%. At November's sales pace, it would take 1.37 months for businesses to clear shelves, down from 1.38 months in October.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama )

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