U.S. business inventories fell in March amid a decline in imports and further decreases are likely as the novel coronavirus outbreak severely disrupts global supply chains and the flow of goods. The Commerce Department said on Friday that business inventories slipped 0.2% in March after dropping 0.5% in February. Inventories are a key component of gross domestic product. March’s decline in business stocks was in line with economists’ expectations.
In addition, motor vehicle inventories rose 4.8% compared to 5.1% as previously reported. Retail inventories excluding automobiles, which go into GDP calculations, fell by 1.0% and not a decline of 1.3% as reported last month. (Reuters)
Reference:
https://www.reuters.com/article/us-usa-economy-inventories/u-s-business-inventories-decline-further-in-march-idUSKBN22R29U, accessed on Friday, May 15, 2020
