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US Business Inventories Rise Less than Expected in December

U.S. business inventories rose less than expected in December, supporting views that fourth-quarter growth was slower than initially thought.

The Commerce Department said on Thursday business inventories nudged up 0.1 percent after an unrevised 0.2 percent increase in November.

Economists polled by Reuters had forecast inventories rising 0.2 percent in December.

Inventories are a key component of gross domestic product. Retail inventories excluding autos, which go into the calculation of GDP, ticked up 0.1 percent in December. That followed a similar gain in November.

The government estimated last month that inventories added 0.8 percentage point to the economy’s annualized 2.6 percent growth pace in the fourth quarter.

But with December manufacturing and wholesale inventory data recently coming in below the government’s assumptions, economists expect that contribution could be lowered by at least five-tenths of a percentage point.

In addition, the trade deficit in December was larger than the government’s estimates.

via CNBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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