US Business Inventories Experience a Slight Decline in December

According to the latest report from the US Census Bureau, business inventories in the manufacturing and trade sectors decreased by 0.2% in December, settling at $2,584.3 billion. Despite this monthly dip, the figures show a 2% increase compared to December 2023, indicating a year-over-year growth.

Trade Sales and Manufacturers' Shipments Show Positive Growth

The combined value of trade sales and manufacturers' shipments for December 2024, adjusted for seasonal and trading day differences but not for price changes, 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.

Inventory-to-Sales Ratio Decreases

At the end of December, the inventory-to-sales ratio stood at 1.35, a slight decrease from 1.37 a year ago. This ratio is a key indicator of the balance between inventory levels and sales, suggesting a more efficient inventory management or stronger sales performance.