U.S. wholesale inventories increased solidly in January even as sales surged and it is taking wholesalers the shortest time in six years to clear shelves, a sign of strengthening demand that aligns with expectations for faster economic growth this year.
The Commerce Department said on Monday that wholesale inventories rose 1.3per cent as estimated last month. Stocks at wholesalers gained 0.6per cent in December. The component of wholesale inventories that goes into the calculation of gross domestic product also increased 1.3per cent in January.Inventories rose 0.6per cent in January from a year earlier. Sales at wholesalers jumped 4.9per cent after advancing 1.9per cent in December. At January's sales pace it would take wholesalers 1.
"Pent-up demand, particularly coming from middle- and high-income households who have been aggressively saving throughout the crisis, is set to drive consumption spending throughout the year as the health crisis begins to abate," said Matt Colyar, an economist at Moody's Analytics in West Chester, Pennsylvania.