U.S. Business Inventories Tick Up In Line With Estimates In December

Reflecting increases in retail and manufacturing inventories, the Commerce Department released a report on Friday showing a modest uptick in U.S. business inventories in the month of December.

The report said business inventories inched up by 0.1 percent in December after edging down by a revised 0.1 percent in November. The slight increase matched economist estimates.

The uptick in inventories came as retail and manufacturing inventories rose by 0.4 percent and 0.2 percent, respectively, although a 0.1 percent drop in wholesale inventories limited the upside.

The Commerce Department also said business sales fell by 0.6 percent in December following a 0.4 percent drop in November.

The decrease in sales came as sales by manufacturers tumbled by 1.4 percent. Wholesale sales also dipped by 0.3 percent, while retail sales were unchanged.

With inventories rising and sales falling, the total business inventories/sales ratio inched up to 1.39 in December from 1.38 in November. The ratio came in at 1.33 a year ago.

The Commerce Department also said business inventories in December were up by 1.7 percent year-over-year, while business sales fell at an annual rate of 2.7 percent.