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US firms increase inventories, see sales jump in December

US firms increase inventories, see sales jump in December | iNFOnews.ca
FILE - A worker walks through a warehouse filled with imported flowers that have arrived in time for Valentines Day, in Miami. On Wednesday, Feb. 15, 2017, the Commerce Department reports on U.S. business inventories for December. (AP Photo/Wilfredo Lee, File)

WASHINGTON – U.S. businesses stockpiled more goods in December and posted the biggest sales increase in nearly six years.

The Commerce Department says that business inventories rose a seasonally adjusted 0.4 per cent in December, led by an increase in stockpiles at stores that sell food and beverages. Auto and auto parts dealers trimmed inventories 0.6 per cent; furniture and appliance stores also cut back.

Companies also reported a 2 per cent monthly sales increase, best since March 2011.

Manufacturers reported that sales rose 2.2 per cent in December; retailers posted a 1.2 per cent gain.

U.S. economic growth was hobbled much of last year by inventory cutbacks. But businesses rebuilt stockpiles in the October-December period, accounting for more than half of fourth-quarter economic growth.

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