WASHINGTON (Reuters] – U.S. business maintained a robust pace of inventory acquisition in November. The rebound in motor vehicle stock levels was slightly more than first thought. It suggests the worst of global supply chains problems were behind.

The Commerce Department reported Friday that business inventories increased 1.3%, following an identical gain in October. Inventory is an important component of the gross domestic product. According to economists, November’s growth was within the range of their expectations.

In November, inventories increased by 8.7% year-over-year.

As per an advance report, November’s retail inventory growth was 2.0%. It follows an October 0.3% increase. According to last month’s estimates, motor vehicle inventories rose 4.2% rather than 4.1%.

The surge was a sign that there is a global shortage in semiconductors. This has impacted motor vehicle production.

A survey by the Institute for Supply Management last week revealed that December saw an increase in supplier deliveries to factories. There are concerns that the Omicron variant of COVID-19 could lead to a worldwide surge in COVID-19-related cases. This would slow down the detanglement of supply chains.

As per last month’s estimates, retail inventories (excluding autos), increased by 1.3%.

For the majority of the 2.3% increase in GDP for this period, the slow pace at which inventory was being drawn down in the third-quarter was responsible. Through much of 2021 inventories were exhausted and the shortages caused by coronavirus are making it difficult to replenish stock. The stockpiling of raw materials is essential for maintaining a healthy manufacturing sector and supporting the entire economy.

In November, wholesale inventories grew 1.4%. The stock of manufacturers increased 0.7%

The November sales of businesses increased by 0.7% after a 2.2% increase in October. It would take businesses 1.25 months to get their shelves cleared, compared with 1.24 months in Oct.