US wholesale inventories increase further in October
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Warehouse workers deal with inventory stacked up to the ceiling at an ABT Electronics Facility in Glenview, Illinois, U.S. December 4, 2018. REUTERS/Richa Naidu
WASHINGTON, Jan 8 (Reuters) - U.S. wholesale inventories increased again in October, suggesting inventories 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 increasing 0.5% in September, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast inventories rising 0.2% in October.
The report was delayed by the 43-day shutdown of the government. Inventories, a key part of gross domestic product, increased 1.7% on a year-over-year basis in October.
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 currently forecasting GDP increasing at a 2.7% annualized rate in the fourth quarter. The economy grew at a 4.3% pace in the July-September quarter.
Sales at wholesalers fell 0.4% in October after dropping 0.2% in September. At October's sales pace it would take 1.30 months to clear shelves, up from 1.29 months in September.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama )
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