WASHINGTON, Jan 13: The US business inventories rose by 0.5 per cent in November, slightly higher than forecast, with much of the increase fuelled by a rise in automotive stocks, a commerce department report revealed on Friday.

Wall Street analysts polled by Reuters had forecast a 0.4 per cent rise in inventories at retailers, wholesalers and manufacturers, compared with the upwardly revised 0.4 per cent gain in October.

Business sales did not match the growth in stocks, Increasing by 0.1 per cent in November. The inventories-to-sales ratio, a measure of how long it would take to deplete stocks at the current sales pace, rose slightly to 1.26 months from a record low of 1.25 months in October.

At a more detailed level within the report, retail inventories rose by 0.9 per cent in November while retail sales rose by 0.8 per cent.

Inventories at motor vehicle and parts dealers rose by 2.1 per cent in November after growing 1.2pc in October. America’s auto industry has suffered sharp swings in demand as car makers used deep discounts to boost purchases over the summer, only to see the sales fade as these inducements were reduced.

The motor vehicle inventories-to-sales ratio narrowed slightly to 2.02 months in November from 2.10 months in October, as sales surged by 5.7 per cent after a 1.8 per cent decline in October.

Inventories at manufacturers rose by 0.2 per cent in November, matching the 0.2 per cent increase in sales, while inventories at wholesalers rose by 0.4 per cent and sales fell by 0.7 per cent.—Reuters