Motor vehicles boost U.S. business inventories in March -Breaking
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© Reuters. FILEPHOTO: Ford Motor assembly workers work on a F-series pickup truck at Dearborn Truck Plant in Dearborn (Michigan), U.S.A. January 26, 2022. REUTERS/Rebecca CookWASHINGTON (Reuters] – U.S. inventories rose slightly in March, boosted by an increase in motor vehicle stocks. Government data was released on Tuesday.
According to the Commerce Department, inventories in businesses increased 2.0% following an increase of 1.8% during February. The Commerce Department said inventories are an important component of gross domestic products. Reuters polled economic experts and forecast inventories increasing by 1.9%.
March saw an increase of 14.7% in inventories year-on-year. In March retail inventories rose 2.3% instead of the 2.0% predicted in an advance report. This follows a 1.6% rise in February.
The inventories of motor vehicles rose 1.6%, rather than 1.2% last month. They saw an increase of 1.4% in February. The retail inventories, including autos which are included in the calculation of GDP, increased 2.5% instead of 2.3%, as was estimated last month.
From the robust October-December period, inventory investment slows down in the first quarter. This, along with the record trade deficit, had a negative impact on the gross domestic product. The economy contracted at 1.4% annually in the first quarter.
The March increase in wholesale inventory was 2.3% The manufacturers saw an increase of 1.3% in stock.
The March increase in business sales was 1.8% after a rise of 1.2% in February. Unchanged from February, March’s sales pace would mean that it will take 1.27 years for businesses to get their shelves cleared.
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