According to the US Commerce Department, the wholesale inventory of the country experienced a decline of 0.4% in January on a monthly basis. This was in line with the predictions of analysts and marks the first adjustment since July 2020, after rising 0.1% in December.
The decline in wholesale inventory was mainly driven by a decrease in durable goods, which fell by 1.2%. Meanwhile, non-durable goods increased by 0.4%. Furthermore, wholesale inventories have risen by 15.8% on a year-on-year basis in January.
The report also highlights that it took business owners 1.34 months to sell out of stock, which is a slight decrease from 1.36 months in December.
This news indicates that wholesalers are facing less stock in January, which could potentially lead to an increase in demand for goods in the coming months. However, the rise in wholesale inventories on a yearly basis suggests that businesses are still building up their stock levels and are optimistic about future demand.
The Commerce Department’s report is an important indicator of the US economy’s health and could impact the decisions of policymakers, investors, and business owners.