The US business inventories have been seeing a very good rise of late. It has increased in January considerably despite recording a big drop in the business sales in one and half years. The US business inventory has risen by 0.6% in January. It is to be noted that it arose in the same margin in December as well.
The inventories of the US retailers have risen by 0.7% in January as against 0.3% in December. The main industrial sector that helped in the boost in the US inventories was the motor vehicle sector. It saw a huge increase of 1.7% in January after seeing a decrease of 0.3% in December. All the retail inventories apart from the autos have seen a 0.1 percent increase.
The manufacturing inventories have risen by 0.3% in January. The stocks at the wholesalers’ end have also seen a good increase to about 0.8%.
All this increase in the inventories is happening in the background of falling of the business sales. The sales of the U.S. business dropped by 0.2% in January. This was the biggest drop in the US business sales since July 2016. It increased by 0.5% in December. It is estimated that the businesses will take about 1.34 months to clear all its inventories in accordance with the pace of the January sales.