WASHINGTON – U.S. wholesale inventories fell 0.2% in November, as initially estimated last month, amid sharp declines in stocks of long-lasting manufactured goods like motor vehicles and computer equipment.
On Wednesday, the Commerce Department’s Census Bureau said that stocks at wholesalers remained unchanged in October. Economists polled by Reuters had expected the drop in inventories, a key part of gross domestic product, would be unrevised at 0.2%.
Inventories increased 0.8% on a year-on-year basis in November.
Monthly wholesale inventories could rebound in the months ahead as businesses fearful of higher tariffs front-load imports. Goods imports surged 4.3% in November, government data showed on Tuesday. President-elect Donald Trump has pledged to impose or massively raise tariffs on imports.
Durable goods inventories decreased 0.4% in November after easing 0.1% in October. Motor vehicle inventories declined 2.2% while those of computer equipment fell 1.3%. There were also decreases in stocks of machinery.
Nondurable goods inventories rose 0.2% as a 4.5% plunge in farm products was more than offset by increases in groceries, apparel, petroleum, and alcohol.
Excluding motor vehicles, wholesale inventories gained 0.1%. This category goes into the GDP calculation.
Private inventory investment was a small drag on GDP in the third quarter. The economy grew at a 3.1% annualized rate in the July-September quarter.
Sales at wholesalers rebounded 0.6% in November after falling 0.3% in October. They were lifted by a 1.5% jump in durable goods. Sales of nondurable goods fell 0.3%.
At November’s sales pace, it would take wholesalers 1.33 months to clear shelves, down from 1.34 in October.
