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U.S. business inventories rise 0.6% in December

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Business inventories in the U.S. rose 0.6% in December, the Commerce Department said Monday. Sales fell 1% in the month, however. The ratio of inventories to sales climbed to 1.38 from 1.36.

That's how many months it would take to sell all the inventory on hand. One year ago, the inventory-to-sales ratio was lower at 1.34. An increase in inventories adds to gross domestic product and is usually a sign of an expanding economy, but when sales are falling, it could mean that companies have overproduced and slower economic growth could be ahead. Inventories in November were revised to show no change instead of a 0.1% decline.

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