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BLOOMBERGBy Courtney Schlisserman
Feb. 9 (Bloomberg) -- Inventories at U.S. wholesalers unexpectedly fell in December following the biggest increase in more than five years, indicating distributors had trouble keeping up with demand.
The 0.8 percent decrease in stockpiles followed a revised 1.6 percent gain in November that was the largest since July 2004, figures from the Commerce Department showed today in Washington. Sales climbed 0.8 percent.
A record inventory drawdown last year has opened the door for manufacturers to pick up production and other companies to increase orders to meet demand. Efforts to prevent stockpiles from falling further in the fourth-quarter provided its biggest boost to economic growth in 20 years and may keep supporting the economy in coming quarters.
“The sales numbers are strong,” said David Sloan, a senior economist at 4Cast Inc., a New York forecasting firm. “If sales continue to rise, inventories are poised to be rebuilt.”
Economists forecast inventories would rise 0.5 percent after a previously estimated 1.5 percent increase in November, according to the median of 31 projections in a Bloomberg News survey. Estimates ranged from a drop of 0.8 percent to a 1 percent gain.
Job openings rose in December to 2.5 million from 2.43 million a month earlier, the first gain in three months, a report from the Labor Department also showed today. Manufacturers and retailers were among industries with the biggest increase in employment opportunities.
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