WASHINGTON, Jan 14 (Reuters) – U.S. businesses maintained a
strong pace of inventory accumulation in November, with motor
vehicle stocks rebounding a bit more than initially thought,
suggesting the worst of global supply chain problems was likely
behind.
Business inventories rose 1.3% after a similar gain in
October, the Commerce Department said on Friday. Inventories are
a key component of gross domestic product. November’s increase
was in line with economists’ expectations.
Inventories increased 8.7% on a year-on-year basis in
November.
Retail inventories accelerated 2.0% in November as estimated
in an advance report published last month. That followed a 0.3%
rise in October. Motor vehicle inventories rebounded 4.2%
instead of 4.1% as estimated last month.
That surge suggested the global shortage of semiconductors,
which has constrained motor vehicle production, was abating.
An Institute for Supply Management survey last week showed
improved supplier deliveries to factories in December. But there
are worries that a global surge in COVID-19 cases, driven by the
Omicron variant, could slow…
