Reflecting rebounds in retail and wholesale inventories, the Commerce Department released a report on Friday showing that U.S. business inventories increased by more than expected in the month of November.
The Commerce Department said business inventories climbed by 0.7 percent in November after edging down by a revised 0.1 percent in October.
Economists had expected inventories to rise by 0.6 percent compared to the 0.2 percent drop that had been reported for the previous month.
Retail inventories surged up by 1.0 percent in November after falling by 0.4 percent in October, while wholesale inventories jumped by 1.0 percent after dipping by 0.1 percent.
The report said manufacturing inventories also rose by 0.2 percent in November following a 0.1 percent uptick in the previous month.
Meanwhile, the Commerce Department said business sales inched up by 0.1 percent in November after climbing by 0.7 percent in October.
While wholesale sales increased by 0.4 percent, retail sales were unchanged and manufacturing sales edged down by 0.1 percent.
With inventories rising much more than sales, the total business inventories/sales ratio crept up to 1.38 in November from 1.37 in October. The ratio came in at 1.39 a year ago.
by RTT Staff Writer
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