U.S. wholesale inventories climb in January
U.S. wholesale inventories posted upbeat figures in January supported by strengthening demand. This boosts hopes for faster economic growth in the U.S.
Data released by the Commerce Department showed a 1.3% increase in wholesale inventories. Stocks at wholesalers improved 0.6% in December. The component of wholesale inventories that goes into the calculation of gross domestic product also jumped 1.3% in January.
From last year, inventories improved 0.6% while wholesalers climbed 4.9% after going up 1.9% in December. At January’s sales pace it would take wholesalers 1.24 months to clear shelves. This was the shortest in six years and was down from 1.29 months in December.
Consumer spending bounced back big in January after declining in November and December.
Spending is expected to go higher once Congress approves President Joe Biden’s $1.9 trillion stimulus package that will provide $1,400 checks to each low and middle-income American household.