US Wholesale Inventories Decline in December

In a recent report by the US Census Bureau, it was revealed that wholesale inventories in the United States experienced a 0.5% decrease in December 2024, compared to the revised figures from November of the same year. This brings the total to $898.5 billion, aligning closely with market expectations. On an annual basis, the total inventories saw a slight decline of 0.1%.

Sales Growth Amidst Inventory Adjustments

Despite the drop in inventories, the sales of merchant wholesalers showed resilience. Adjusted for seasonal variations and trading-day differences, but not for price changes, sales amounted to $686.5 billion. This represents a 1% increase from November's revised figures and a 2.8% rise compared to the same period in 2023.

Inventory-to-Sales Ratio Declines

The inventory-to-sales ratio, based on seasonally adjusted data, stood at 1.31 in December. This marks a decrease from the 1.35 ratio reported in December of the previous year, indicating a more efficient inventory management and potentially signaling shifts in the economic landscape.