US Business Inventories Decline

In a recent report by the US Census Bureau, it was revealed that inventories in the manufacturing and trade sectors in the United States experienced a 0.2% decrease in December, totaling $2,584.3 billion. Despite this monthly decline, the inventory levels showed a 2% increase compared to December 2023, indicating a complex economic landscape.

Trade Sales and Manufacturers' Shipments Rise

Adjusting for seasonal and trading day differences, the combined value of trade sales and manufacturers' shipments in December 2024 reached $1,908.8 billion. This represents a 0.8% increase from the previous month and a significant 3.1% rise compared to the same period last year, showcasing a robust growth in sales and shipments.

Inventory-to-Sales Ratio Declines

The inventory-to-sales ratio, a key indicator of the balance between inventory levels and sales, stood at 1.35 by the end of December. This marks a decrease from 1.37 a year ago, suggesting that businesses are effectively managing their inventory in relation to their sales, potentially indicating a healthy adjustment to market demands.