US wholesale inventories increase again in November
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An automobile dealership uses racks to store its inventory of vehicles in Los Angeles, California, U.S. January 29, 2024. REUTERS/Mike Blake
WASHINGTON, Jan 29 (Reuters) - U.S. wholesale inventories increased in November, suggesting inventory investment could add to gross domestic product in the fourth quarter after being a drag for two straight quarters.
Stocks at wholesalers rose 0.2% after a similar gain in October, the Commerce Department's Census Bureau said on Thursday. The report was delayed by the 43-day shutdown of the government. Inventories, a key part of gross domestic product, increased 1.8% on a year-over-year basis in November.
Business inventories have declined for two straight quarters, subtracting from the GDP growth. The drag was, however, offset by a shrinking trade deficit during that period.
The Atlanta Federal Reserve is forecasting that gross domestic product increased at a 5.4% annualized rate in the fourth quarter, though estimates from big Wall Street banks, including Goldman Sachs, are running well below a 3.0% pace.
Economists expect the longest government shutdown in history undercut GDP growth last quarter.
Sales at wholesalers rebounded 1.3% in November after slipping 0.4% in October. At November's sales pace it would take 1.28 months to clear shelves, down from 1.30 months in October.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama )
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