US corporate inventory continues to rise, but car stocks are falling

Texas News Today

FILE PHOTO: The car is available for sale at a car dealership on May 2, 2016 in Carlsbad, California, USA. Reuters / Mike Blake

15 October 2021

WASHINGTON (Reuters) – US corporate inventories rose steadily in August as auto retailers struggled to replenish as global semiconductor shortages forced automakers to cut production. ..

The Commerce Department said on Friday that there was a 0.6% increase in corporate inventory after a similar increase in July. Inventory is an important element of GDP. August’s growth was in line with economists’ expectations.

Inventory increased 7.4% year-on-year in August. According to a preliminary report released last month, August retail inventory increased by 0.1%. It rose 0.4% in July. Car inventories fell 1.4% from an estimated 1.5% last month.

Retail inventory excluding automobiles included in the GDP calculation grew by 0.6% over the previous month’s estimate.

Corporate inventory was depleted in the first half of the year, but inventory restructuring has become difficult as supply bottlenecks continue due to the COVID-19 pandemic and congestion at ports in the United States and China.

As a result, the GDP growth forecast for the third quarter has been reduced from a 7% pace to an annualized rate of 1.3%. Economic growth in the second quarter was 6.7%.

Wholesale inventory grew 1.2% in August. Inventory of manufacturers grew 0.6%.

Trade sales rose 0.5% in July and then declined 0.1% in August. At the pace of August sales, it would take 1.26 months for businesses to clear shelves, up from 1.25 months in July.

(Reporting by Lucia Muticani; Editing by Andrea Ricci)

US corporate inventory continues to rise, but car stocks are falling

Source Link US Corporate Listing Continues to Rise, But Car Stocks Are Falling

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