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US wholesale inventories increase further in October

BY Reuters | ECONOMIC | 01/08/26 10:31 AM EST

WASHINGTON, Jan 8 (Reuters) - U.S. wholesale inventories increased again in October, suggesting inventories could add to gross domestic product in the fourth quarter ?after being a drag for two straight quarters.

Stocks ?at wholesalers rose 0.2% after increasing 0.5% ?in September, the Commerce Department's ?Census Bureau ?said on Thursday. Economists polled by Reuters had ?forecast inventories rising 0.2% ?in October.

The report was delayed by the 43-day shutdown of the ?government. Inventories, a ?key ?part of gross domestic product, increased 1.7% on a year-over-year basis in October.

Business ?inventories have declined for two straight quarters, subtracting from the GDP growth. The drag was, however, offset by a shrinking trade deficit during that period.

The ?Atlanta ?Federal Reserve is currently forecasting GDP increasing at a 2.7% annualized ?rate in the fourth quarter. The economy grew at a 4.3% pace in the July-September quarter.?

Sales at wholesalers fell 0.4% in October after dropping 0.2% in September. At October's ?sales pace it would take 1.30 months to clear shelves, up from 1.29 months in September.

(Reporting ?by Lucia Mutikani; Editing by Chizu Nomiyama )

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