Inventories Rose 1.0 Percent To Highest Level In Two Years
According to the latest Commerce Department data, US wholesale inventories increased by 1.0 percent in November. Reuters reported that November’s gains followed a decrease in inventories of 0.1 percent for October, and was the biggest monthly gain for wholesale inventories since November 2014. Wholesale stocks excluding autos “increased 0.7 percent in November,” while wholesale stocks of farm products “surged 5.0 percent after a rise of 2.9 percent in October” and wholesale inventories of petroleum “climbed 2.7 percent.” In addition, automobile stocks increased 3.2 percent and machinery inventories fell 0.2 percent. MarketWatch reported that stronger US wholesale inventories will likely contribute to boosting the Q4 2016 GDP. According to a survey of economists, “GDP will advance 2.3% at the end of 2017, though that number could rise.” The AP noted that for the bulk of the past year, “businesses at all levels have been struggling to work down a pile of excess inventories, an effort that has been a drag on overall economic growth.” As 2017 begins, however, economists are projecting that this process of going through excess inventories “is drawing to an end and inventory rebuilding will contribute to stronger growth in the future.”
What This Means For Small Businesses
Small businesses have been seeking indications that the overall health of the US economy is improving, and the business climate is ripe for growth. The latest US wholesale inventories data is a signal that the economy may be picking up steam.
RTT News also covered November’s US wholesale inventories data.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.