Drop in US wholesale inventories in November unrevised at 0.2%

Washington: So, the latest news is that U.S. wholesale inventories took a little dip in November, staying at a 0.2% drop just like they said last month. This decline mainly came from a big drop in stocks of long-lasting goods, like cars and computers.

According to the Commerce Department, inventories were steady in October. Economists had predicted this 0.2% drop would stick, and it did. Year-over-year, though, inventories actually went up by 0.8% in November.

Looking ahead, there’s a chance that wholesale inventories might bounce back soon. Businesses are worried about potential higher tariffs, so they might be bringing in more goods now. Imports jumped by 4.3% in November, which is pretty significant.

When we break it down, durable goods inventories fell by 0.4% in November, following a slight dip in October. Motor vehicle stocks dropped by 2.2%, and computer equipment saw a 1.3% decline. Machinery stocks also went down.

On the flip side, nondurable goods inventories went up by 0.2%. A big drop in farm products was balanced out by increases in groceries, clothing, oil, and alcohol.

If we leave out motor vehicles, wholesale inventories actually gained a tiny bit, up by 0.1%. This part is important because it factors into GDP calculations.

In the third quarter, private inventory investment was a slight drag on GDP, but the economy still grew at a solid 3.1% annual rate from July to September.

Sales at wholesalers bounced back by 0.6% in November after a small drop in October. This was mainly due to a 1.5% increase in durable goods sales, while nondurable goods sales dipped by 0.3%.

At the current sales pace, it would take wholesalers about 1.33 months to clear their shelves, which is a slight improvement from 1.34 months in October.