2019.02.2510:17:00UTC+00U.S. Wholesale Inventories Jump Much More Than Expected In December

Delayed data released by the Commerce Department on Monday showed wholesale inventories in the U.S. jumped by much more than anticipated in the month of December.

The report said wholesale inventories surged up by 1.1 percent in December after climbing by an upwardly revised 0.4 percent in November.

Economists had expected inventories to rise by 0.3 percent, matching the increase originally reported for the previous month.

The bigger than expected jump in wholesale inventories came as inventories of durable goods spiked by 1.5 percent in December after rising by 0.7 percent in November.

Inventories of metals, furniture, electrical equipment, and lumber all showed significant increases during the month.

The report said inventories of non-durable goods also rose by 0.3 percent in December after edging down by 0.1 percent in November.

A 4.8 percent slump in petroleum inventories was offset by a 3.8 percent spike in apparel inventories as well as notable increases in inventories of chemicals and miscellaneous non-durable goods.

Meanwhile, the Commerce Department said wholesale sales tumbled by 1.0 percent in December after plunging by 1.2 percent in November.

Sales of non-durable goods showed another substantial decrease, plummeting by 2.5 percent amid an 11.1 percent nosedive in petroleum sales.

The steep drop in sales of non-durable goods was partly offset by a rebound in sales of durable goods, which climbed by 0.7 percent in December after falling by 0.7 percent in November.

Substantial increases in sales of furniture and electrical equipment more than offset notable decreases in sales of automotive products and hardware.

With inventories jumping and sales slumping, the inventories/sales ratio for merchant wholesalers rose to 1.33 in December from 1.30 in November.