August Unrevised US Wholesalers Inventories, Auto News, ET Auto
WASHINGTON: US wholesalers’ inventories jumped in August amid falling sales, although auto inventories remained very low due to a global chip shortage, which is hampering production of motor vehicles.
The Commerce Department said on Friday that wholesalers’ inventories rose 1.2% according to estimates last month. Wholesale inventories gained 0.6% in July. Wholesale inventories rose 12.3% in August from a year earlier.
Inventories of motor vehicles fell 0.1% after declining 0.3% in July. Inventories are a key component of gross domestic product. Inventories held by wholesalers, excluding autos, rose 1.3% in August. This component enters into the calculation of GDP.
Companies’ stocks were depleted in the first half of the year, but shortages amid persistent bottlenecks due to the COVID-19 pandemic and port congestion in the United States and China are making it difficult to replenish stocks.
Restocking is expected to support manufacturing and economic growth in the second half of the year.
Wholesale sales fell 1.1% in August after increasing 2.1% in July. At the pace of August sales, it would take 1.23 months for wholesalers to clear the shelves, compared to 1.20 months in July.