US: Business inventories in the limelight – Nomura

US business inventories likely rose at a steady pace in December, suggests the research team at Nomura.

Key Quotes

“The Census Bureau’s December factory orders report indicated inventories at factories rose at a solid pace. However, advance estimates by the Census Bureau suggest inventories held by wholesalers and retailers only rose modestly. Altogether, it is likely the final business inventory estimates for December will come in close to the estimates implied by the BEA’s advance Q4 real GDP report. Change in inventories subtracted 0.67pp from real GDP growth in Q4, after a strong Q3 contribution.”