WASHINGTON (Reuters) – U.S. wholesale inventories increased solidly in January despite a surge in sales, suggesting inventory investment could again contribute to economic growth in the first quarter.
The Commerce Department said on Monday that wholesale inventories rose 1.3% as estimated last month. Stocks at wholesalers gained 0.6% in December. The component of wholesale inventories that goes into the calculation of gross domestic product also increased 1.3% in January.
Inventories rose 0.6% in January from a year earlier. Businesses are replenishing inventories after they were drawn down early in the coronavirus pandemic. That has helped to underpin manufacturing.
Wholesale stocks of motor vehicles and parts rebounded 1.2% in January.
Sales at wholesalers surged 4.9% after advancing 1.9% in December. At January’s sales pace it would take wholesalers 1.24 months to clear shelves, down from 1.29 in December.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
