US business inventories rise 0.9% in January

US business inventories rose 0

US business inventories rose 0.9 per cent in January, exactly in line with analyst expectations, in their fourth straight monthly climb, government data showed today.

The Commerce Department said stocks at manufacturers, retailers and merchant wholesalers grew to a seasonally adjusted $1.291 trillion, while sales rose 0.8 percent to $994.47 billion.

Wall Street analysts polled by Reuters had expected the 0.9 percent climb in January inventories.

Rising inventories can signal either improved business confidence in future demand or an unexpected sales drop leading to involuntary stock-building.

READ MORE

January business inventories remained lean by historical standards. The inventory-to-sales ratio, which measures the number of months it would take to deplete stocks at the current sales pace, was unchanged from December at a record low 1.30 months' worth.

At a more detailed level within the report, retail inventories rose 0.4 percent in January after a 0.3 percent December climb, while sales were up 0.2 percent. Excluding cars and parts, retail stocks grew a more robust 0.8 percent.

Manufacturers' stocks rose 1.3 percent in January, recovering from a meager 0.1 percent expansion in December. Manufacturing sales increased 1.4 percent.

In a separate report issued last week, the Commerce Department said wholesale inventories climbed 1.1 percent in January, led by gains in cars and parts and other durable goods, while wholesale sales grew a more modest 0.5 percent.