Business Inventories Up 0.4 Percent in December

February 14, 2012 10:21 AM EST

(REUTERS) - Business inventories rose 0.4 percent in December, reinforcing the view that fourth-quarter economic growth received a big boost from companies restocking their shelves.

The Commerce Department said on Tuesday that inventories climbed to $1.56 trillion in December.

Economists polled by Reuters had forecast inventories increasing 0.5 percent in December. Sales rose 0.3 percent in November, the government said.

Inventories are a key element for measuring changes in gross domestic product.

A report on January 27 showed growth in business inventories helped drive a 2.8 percent expansion in gross domestic product during the fourth quarter.

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Tuesday's report showed manufacturing stocks rose 0.1 percent in December, while retailers gained 0.2 percent and wholesalers' stocks edged 1.0 percent higher.

Business sales advanced 0.7 percent to $1.23 trillion.

The inventory-to-sales ratio, which measures how long it would take to clear shelves at the current sales pace, fell to 1.26 months from 1.27 months in November. (Reporting by Jason Lange; Editing by Andrea Ricci)

Copyright 2012 Thomson Reuters. All rights reserved.
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