US Business Inventories Experience a Slight Decline

In December, the United States witnessed a 0.2% decrease in business inventories, totaling $2,584.3 billion, as reported by the US Census Bureau. This marks a 2% increase from the previous year, highlighting a complex economic landscape.

Trade Sales and Manufacturers' Shipments Show Resilience

Despite the inventory dip, trade sales and manufacturers' shipments adjusted for seasonal variations rose to $1,908.8 billion, showcasing a 0.8% monthly and a 3.1% annual growth. This indicates a robust demand and a resilient manufacturing sector.

Inventory-to-Sales Ratio Drops

The inventory-to-sales ratio at the end of December stood at 1.35, a slight decrease from 1.37 a year ago. This ratio is a critical indicator of the balance between supply and demand, suggesting a slight improvement in inventory management efficiency.