Wholesale Sales Surge Keeps Inventories Low

Sales at U.S. wholesalers surged again in December, keeping inventories lean and suggesting manufacturers may boost production in the new year to keep up with consumer demand, Commerce Department figures showed. Sales rose 1.1% in December, paced by increases for autos, furniture and drugs, after a 1.9% jump in November. Inventories at wholesalers grew 0.4% after rising 1.3% in November. That reduced the ratio of stockpiles to sales to 1.27 months, the lowest in 1 1/2 years. The report showed that rising sales of imported cars, electrical equipment and metals pushed up sales of durable goods 1.6% in December, following a 1.9% November increase. Wholesale sales of nondurable goods, including groceries and higher-priced petroleum products, rose 0.6% after gaining 1.8% a month earlier. Inventories of durable goods, which include automobiles, electrical goods and hardware, led the increase. Stockpiles of nondurable goods rose 0.6%, reflecting more valuable inventories of drugs, groceries and chemicals.