US business inventories increase in September
2022.11.16 10:46
US business inventories increase in September
Budrigannews.com – U.S. business inventories rose modestly, suggesting that companies are becoming more cautious about ordering more goods as rising borrowing costs dampen demand.
Bus. inventories rose 0.4 percent, up 0.9 percent, according to the Commerce Department. Inventories are an important component of gross domestic product. Economists polled by Reuters had forecast inventories rising 0.5 percent.
Inventory increased by 17.8% year-on-year. Retail inventory rose 0.4 percent in March, as estimated in an earlier report released last month. It progressed by 8% in 1.4 months.
Amid rising interest rates and a shift in spending on services, improving supply chains and slowing demand for goods have left retailers with a glut of goods. He was forced to wait to place more orders until he offered a discount on the price and eliminated unnecessary inventory.
Economists worry that a glut of goods could be one of the triggers for an expected recession next year.
Auto stocks rose 1.9 percent last month, according to estimates. They rose 3.6% in January. Retail inventories, excluding cars included in the GDP calculations, fell by 0.1% as estimated last month.
Wholesale shares rose 0.6 percent in January. The manufacturer’s shares were up 0.2 percent.
Inventory accumulation has slowed considerably from a solid pace in late 2021 and early 2022. As a result, inventories boosted GDP for the second consecutive quarter.
Business sales rose 0.2% in May after gaining 0.3% from the increase. At the 9-month sales pace, unchanged from the 8-month pace, it will take 1.33 months to clear the shelves.
