US business inventories rose a stronger-than-expected 0.4 per cent in January as stocks of autos and building materials grew, a Commerce Department report revealed today.
Wall Street analysts had forecast a 0.3 per cent rise in inventories at retailers, wholesalers and manufacturers after an upwardly revised 0.8 percent gain in December.
Business sales rose at a faster pace than inventories, increasing 1.3 per cent, down slightly from the upwardly revised 1.4 percent growth in December.
Retail inventories rose 0.5 percent in January, while retail sales rose 2.9 percent.
Motor vehicle and parts inventories rose 0.6 per cent after an upwardly revised 1.1 per cent increase in December. Automotive sales, however, jumped 4.2 percent, pushing the sector's inventories-to-sales ratio down to 1.96 months from 2.03 months in December.