Business Inventories Increase 0.5% in February

U.S. enterprise inventories rose again in February, an indicator of economic progress as companies restock right after pandemic shutdowns.

The Commerce Section approximated manufacturers’ and trade inventories at an end-of-month level of $two,010.eight billion, up .5% from January but down .seven% 12 months around 12 months.

February’s acquire, which was in line with economists’ expectations, followed a .four% progress in January.

Retail inventories ended up unchanged although motor motor vehicle inventories fell two.6%. “Motor motor vehicle stocks are dwindling as a global semi-conductor shortage hampers automobile output,” Reuters explained.

Retail inventories excluding autos increased 1.two% as approximated last month, adhering to a .two% acquire in January.

Stock financial commitment has contributed to GDP progress for two straight quarters. Progress estimates for the very first quarter are as superior as a nine.seven% annualized level and GDP is predicted to boost far more than seven.% this 12 months, which would be the speediest due to the fact 1984 and would comply with a three.5% contraction last 12 months, the worst performance in seventy four several years.

Company profits fell 1.nine% in February right after soaring four.5% in January. At February’s profits pace, it would take 1.30 months for corporations to very clear shelves, up from 1.27 months in January.

enterprise inventories, Commerce Section, economic progress, GDP, retail