Reuters

U.S. wholesale inventories revised higher in February

Fri, April 8, 2022, 10:30 AM

WASHINGTON (Reuters) - U.S. wholesale inventories increased more than initially thought in February, but inventory investment probably offered little or no boost to economic growth in the first quarter.

The Commerce Department said on Friday wholesale inventories rose 2.5% in February, instead of 2.1% as reported last month. Stocks at wholesalers advanced 1.2% in January. Economists polled by Reuters had expected inventories would be unrevised.

Wholesale inventories surged 19.9% in February on a year-on-year basis. Inventories are a key part of gross domestic product. Wholesale motor vehicle inventories rebounded 1.4% after declining 2.3% in January. ... Wholesale inventories, excluding autos, increased 2.6% in February. This component goes into the calculation of GDP.

Inventory investment surged at a robust seasonally adjusted annualized rate of $193.2 billion in the fourth quarter, contributing 5.32 percentage points to the quarter's 6.9% growth pace. Most economists see further scope for inventories to rise, noting that inflation-adjusted inventories remain below their pre-pandemic level. Sales-to-inventory ratios are also low.

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