Decline in Business Inventories

In December, the United States witnessed a 0.2% decrease in inventories across the manufacturing and trade sectors, totaling $2,584.3 billion, as per the latest report from the US Census Bureau. This figure represents a 2% increase compared to the same month in the previous year, highlighting a nuanced economic landscape.

Trade Sales and Manufacturers' Shipments

Adjusting for seasonal and trading day differences, the combined value of trade sales and manufacturers' shipments for December 2024 reached $1,908.8 billion. This marks a 0.8% rise from the previous month and a significant 3.1% increase from December 2023, indicating a robust growth in sales and shipments.

Inventory to Sales Ratio

The ratio of business inventories to sales at the end of December stood at 1.35, a slight decrease from 1.37 a year earlier. This adjustment reflects the dynamic balance between inventory management and sales performance in the US economy.