US wholesale inventories rose more than expected in February as petroleum recorded the biggest increase in a year, but there were little signs of an unwanted piling up of goods amid rising sales.
Total wholesale inventories increased 0.9 per cent to a record $478.9 billion, the Commerce Department said today, after an upwardly revised 0.6 per cent rise in January.
Economists polled by Reuters had expected stocks of unsold goods at US wholesalers to rise 0.5 per cent in February after a previously reported 0.4 per cent gain in January.
Inventories are a key component of gross domestic product changes and accounted for much of the economy's annual 3 per cent growth pace in the fourth quarter.
A similar contribution is not expected for the first three months of 2012. Data next week on overall business inventories for February could shed more light on how much of a boost restocking will be to first-quarter GDP.
So far, GDP growth estimates for the quarter are around 2 per cent.
The value of petroleum stocks jumped 5.6 per cent in February, the largest gain since February 2011, after rising 2.8 per cent in January.
Automobile inventories fell 0.9 per cent in February, reflecting strong demand for motor vehicles, after rising 0.6 per cent.
In February, sales at wholesalers rebounded 1.2 per cent after being flat in January. Economists had expected sales to increase 0.7 per cent in February.
Sales at wholesalers in February were mostly broad-based. Auto sales gained 0.2 per cent, while petroleum increased 3.9 per cent.
At February's sales pace it will take 1.17 months to clear shelves at the current, unchanged from January.
Reuters