U.S. Business Inventories Edged Higher in February

By Joshua Kirby

U.S. businesses added to their inventories in February, a sign that consumers aren't being deterred from spending despite stubbornly high price inflation.

Business inventories rose by 0.4% over the month after staying flat at the beginning of the year, adjusted Commerce Department figures showed Monday. This was in line with the expectations of economists polled by The Wall Street Journal.

Inventories climbed at all types of business, rising 0.6% on month at retailers, 0.5% at wholesalers and 0.3% at manufacturers. On an annual basis, total inventories were 1.0% higher.

The ratio of inventories to sales, a guide to how many months it would take for businesses to clear their inventories at the current sales rate, fell slightly to 1.38 in February from 1.39 a month earlier. The ratio was 1.37 in February of last year.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 15, 2024 10:27 ET (14:27 GMT)

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