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 the untangling of supply chains.
Retail inventories excluding autos, which go into the
calculation of GDP, shot up 1.3% as estimated last month.
A slower pace of inventory drawdown in the third quarter
accounted for the bulk of the 2.3% pace of increase in GDP
growth for that period. Inventories were depleted through much
of 2021, and coronavirus pandemic-related shortages are making
it harder to replenish stocks. Restocking is keeping
manufacturing humming and supporting the overall economy.
Wholesale inventories increased 1.4% in November. Stocks at
manufacturers rose 0.7%.
Business sales increased 0.7% in November after rising 2.2%
in October. At November's sales pace, it would take 1.25 months
for businesses to clear shelves, up from 1.24 months in October.
(Reporting by Lucia Mutikani;
Editing by Andrea Ricci)