US business inventories nudge up in December

WASHINGTON, March 6 (Reuters) – U.S. business inventories edged up in December amid a rebound in stocks at retailers, government data showed on Friday.

Inventories increased 0.1% after being unchanged in November, the Commerce Department’s Census Bureau said.

Inventories are a key component of GDP and one of the most volatile. The rise was in line with economists’ expectations.

Inventories advanced 1.6% on a year-over-year basis in December. The report was delayed by last year’s shutdown of the federal government. The government last month reported that inventories declined in the fourth quarter for the third straight quarter, though the pace of contraction slowed.

Inventories added 0.21 percentage point to the October-December quarter’s 1.4% annualized growth rate.

Retail inventories rebounded 0.1% in December after dropping 0.4% in November. Wholesale inventories gained 0.2% in December while stocks at manufacturers rose 0.1%.

Business sales increased 0.5% in December after rising 0.6% in November. Sales at retailers were unchanged. At December’s sales pace, it would take 1.36 months for businesses to clear shelves, down from 1.37 months in November.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)