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Business Inventories Rose In December

WASHINGTON, Feb. 14 (UPI) — Manufacturing and trade business inventories rose 0.4 percent in December, just shy of the consensus forecast, the U.S. Commerce Department said Tuesday.

Economists had expected a 0.5 percent rise from the previous month.

Inventories rose to $1.55 trillion, an 7.7 percent increase from a year earlier.

Trade sales and manufacturers’ shipments rose 0.7 reaching $1.23 trillion. From December 2010, sales and shipments jumped 8.9 percent.

The inventory-sales ratio for manufacturing and trade businesses was 1.26 at the end of December, down from 1.28 in December 2010.

The ratio indicates how long it would take to sell all inventory at current prices and attempts to indicate whether inventories are rising due to an anticipation of sales or, conversely, a decline in sales that is causing an inventory backlog.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

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