WASHINGTON (AP) - U.S. businesses boosted their stockpiles slightly in December, as sales dropped sharply. This combination has stoked anxieties about weakening economic growth, as sales over the entire year dropped for the first time since the Great Recession.
The Commerce Department said Friday that December business inventories rose a seasonally adjusted 0.1 percent, after having slipped 0.1 percent in November. Both manufacturers and retailers - which were responding to holiday shopping - increased their stockpiles.
But sales fell 0.6 percent in December, with a stiff 1.4 percent drop in manufacturer revenues accounting for much of the drop. Retail sales were nearly unchanged.
For all of last year, business sales fell 2.4 percent last to $15.8 billion, the first decline since 2009 when the economy bottomed out during the Great Recession.
The figures suggest businesses are struggling to sell off their inventories, a potential sign of lower demand and excess supply that signals slowing growth. Still, strong hiring levels have warded off fears of a downturn.
The inventory-to-sales ratio has risen to 1.39 from 1.33 a year ago. December recorded the highest ratio since May 2009.