Us Wholesale Inventories Up

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Us Wholesale Inventories Up

US Wholesale Inventories Up By 0.4% During December

According to the latest data from the US government, a rebound was seen in the wholesale inventories during December. The surge in the inventories was primarily due to an uptick in the motor vehicle stocks.

0.4% jump was seen during December, while November's reading showed a decline of 0.4%. According to forecasts, the inventories were supposed to remain the same.

This reading is essential as the inventories are a significant part of the US GDP. On a Y/Y basis, a 2.7% decline was seen in December. On the contrary, a 0.1% increase occurred in the private inventories, which added a +0.1% increase to the economy's growth rate.

3.3% Growth In 4th Quarter

Estimates tell us that the 3.3% growth seen during the 4th quarter also had a +0.1% share from the private inventories.

The wholesale inventories of cars showed an increase of around 2.9% in December. A month ago (November), the same reading showed a 2% decline.

At the same time, an increase in the machinery, medicine, paper, & and computer equipment wholesale stocks was also seen during December. On the contrary, the wholesale petroleum, apparel, and furniture stocks went down.

If we look at the numbers without the autos (cars), the increase was around 0.1% during December. The reason why this reading is essential is that it is used for calculating the annual GDP rate.

The situation is attractive with an increase in the wholesale inventories and a decline in the US CPI. Now, all that's missing is a few comments from the Fed on how they view the recent economic data.

Even a slight hint of rate cuts will send the US Dollar into a sea of red, while reaffirmation of no change will support the US Dollar.

The Federal Reserve's meeting in March will likely shed light on how the central bank views the recent developments.

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