With decreases by wholesale and retail inventories more than offsetting an increase by manufacturing inventories, the Commerce Department released a report on Friday showing U.S. business inventories unexpectedly edged lower in the month of December.
The report said business inventories slipped by 0.2 percent in December after inching up by 0.1 percent in November.
The unexpected dip by business inventories came as wholesale inventories slid by 0.5 percent in December after edging down by 0.1 percent in November, and retail inventories fell by 0.4 percent in December after a 0.1 percent uptick in November.
On the other hand, the report said manufacturing inventories climbed by 0.4 percent for the second consecutive month.
The Commerce Department also said business sales increased by 0.8 percent in December after rising by 0.6 percent in November.
Wholesale sales jumped by 1.0 percent during the month, while retail and manufacturing sales climbed by 0.8 percent and 0.6 percent, respectively.
With inventories falling and sales increasing, the total business inventories/sales ratio dipped to 1.35 in December from 1.37 in November.