WASHINGTON (Reuters) – Wholesale inventions began in the United States more in December, as sales rose, according to government data Wednesday.
The Commerce Department reported that wholesale inventions increased 0.1% in December, rather than 0.3% growth, as reported last month. The wholesaler inventions remained unchanged in November. The component of wholesale inventions calculating gross domestic product (GDP) rose 0.7% in December.
Inventory fell 1.6% in December compared to a year earlier.
The economy grew at an annualized rate of 4.0% in the fourth quarter, following a historical rate of expansion of 33.4% in the third quarter. Inventory contributed to GDP growth for two consecutive quarters.
Companies are holding stocks after being consumed early in the epidemic. This helped sustain the manufacturing sector, leading to a slowdown in consumer spending.
Wholesale inventions of motor vehicles and parts fell 3.3%.
Wholesale sales rose 1.2% in December after rising 0.3% in November. In December sales, wholesalers would take 1.29 months to clean the shelves, compared to 1.31 months in November.
(By Lucia Mutikani)