Tag Archives: Inventories

Inventories Up: Economy Moving Forward

June’s data show that US business inventories realized their largest increase in seven months as retailers continue to re-stock at an accelerated pace in reaction to an increase in demand for goods at home.

According to the Commerce Department business inventories climbed by 0.5 percent after an unrevised increase of 0.3 percent in May.

Inventories are considered an important component of the country’s gross domestic product. Retail inventories did even better, rising by 0.6 percent in June and the same percentage in May.

Stock of motor vehicles surged by 0.7 percent after an even higher rise of 1.2 percent in May.

Retail inventories, not including cars, which are included in the calculation for GDP, went up 0.5 percent, up from 0.2 percent in May.

Inventory investment did not have an impact on the 2.6 percent annualized growth rate of the second quarter of this year, after severing off 1.46 percentage points at the beginning of the year.

Sales Drop While Business Inventories Rise for Second Consecutive Month

Inventories up, sales down in  October and November
Inventories up, sales down in October and November

The Commerce Department announced on Wednesday the US business inventories rose during the month of November while sales fell for the second month in a row.

Business inventories grew by 0.2 percent, a figure that is consistent with the expectations of economists.  The number also followed a similar gain in October.

Inventories are an important part of the total gross domestic product. Excluding cars, retail inventories went up by 0.1 percent after posting a gain of 0.3 percent in October.

In November sales shrunk by 0.2 percent and 0.3 percent in October. It would take approximately 1.31 months for businesses to clear their shelves is sales continued at November’s tempo.