Business inventories in the US increased 0.6% in October from a year earlier but edged downward 0.1% from a month earlier, the first monthly drop since June, according to Commerce Department data. Wholesale inventories fell 0.4% and manufacturing inventories increased 0.1%, while retail stocks declined 0.1% in October after a 0.4% increase in September.

US consumer resilience continues as the holiday season peaks, with retail sales increasing 0.3% in November from the previous month, according to the latest data from the Commerce Department. The 0.3% increase follows a 0.2% decline in October. "The rebound in retail sales in November provides further illustration that the continued rapid decline in inflation is not coming at the cost of significantly weaker economic growth," said Andrew Hunter, deputy chief US economist at Capital Economics.

Initial jobless claims in the US fell by 19,000 to a four-week low of 202,000, indicating continued resilience in the job market. The 202,000 initial claims were well below expectations, and the four-week moving average of jobless claims dropped 7,750 to 213,250. Continuing unemployment claims increased by about 20,000 to 1.87 million.

US companies have been trying to reduce their exposure to China's manufacturing sector, turning instead to Mexico, Vietnam, Indonesia and domestic production. But data shows a significant portion of the products shipped to the US from Southeast Asia and Mexico were made in Chinese-owned factories, making it harder for US companies to disentangle themselves from Chinese manufacturers and supply chains.

Supply chain diversification and resiliency have been at the forefront of procurement professionals' minds since the pandemic caused supply chains to shift away from Chinese sources, writes Ron Klein, PwC principal and leader of PwC's Operations Transformation Global Sourcing COE. To have an innovation mindset, executives should consider creating collaboration tools, investing in supplier relationship management tools and trying to work with suppliers to create joint innovation partnerships, Klein notes.

Cloud-based procurement tools, like purchasing applications, allow for better collaboration between teams and fewer disruptions, but companies should still be wary of the risks involved in moving to a digital solution, writes Marisa Brown with APQC. Depending on which cloud solution -- public, hybrid or private -- a company uses, they must weigh the scalability, cybersecurity and system compatibility, Brown notes.

The biggest AI marketing opportunity lies in using the technology to better anticipate customer needs and deliver better experiences, writes Code and Theory's Dan Gardner. "If your competition is already anticipating the ways AI will impact their business and their customers, they aren't going to just beat you in the short term; they could devastate you in the long term," Gardner warns.

Plain language is preferred by 80% of B2B decision-makers and is more likely to spur responses to calls to action, according to a study conducted with B2B health care executives by Aha Media Group. The research reveals B2B writing tips, such as avoiding jargon, centering content around the target audience, using an active voice, highlight important points and making it clear how readers will benefit.

The Federal Reserve held its benchmark interest rate steady in a range of 5.25% to 5.5% at the end of its meeting on Wednesday. Projections suggest that most officials anticipate three rate cuts in 2024. Markets reacted enthusiastically to the news, with the Dow Jones Industrial Average gaining almost 500 points for the day.

Heading into the uncertain conditions of 2024, CEOs need to clarify their purpose to build trust within their organization, be sure their executive leadership team has the necessary skills to meet whatever comes and create a culture of innovation at every level, write Korn Ferry's Elise Schroeter, Lars Ronn and Lydia Glover. "Transformational companies require enterprise leaders who, through empathy and compassion, can unite the organization behind a common purpose," they write.

Experience three days of excellent networking opportunities, cutting-edge content, and educational programming for leaders in the wholesale-distribution industry at NAW's Executive Summit Jan. 30 - Feb. 1. Hear from world-class speakers and explore issues critical to the industry. Be prepared for what's next and learn new strategies to get there first. View agenda and registration information here.

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