Wholesale inventories up 0.4% in Dec., down 2.7% YoY | Logistics pros see hints of recovery | Construction begins on Performance Food's new Mo. facility
Wholesale inventories increased 0.4% in December from the previous month and declined 2.7% from a year earlier, according to revised Commerce Department data. Wholesale motor vehicle inventories were a significant driver of December's monthly gain, jumping 2.9% after a 2% drop a month earlier. Without autos, US wholesale inventories ticked upward just 0.1%. Other sectors fueling the increase included professional and computer equipment, machinery, paper and medicine, while furniture, apparel and petroleum fell.
Logistics executives are cautiously optimistic following research reporting recent upturns in imports, transportation prices and intermodal rail volume along with an increasing economy and retail sales. Covenant Logistics' Paul Bunn says "hopefully we're about to bounce off the bottom" with "a U-shaped recovery."
Food distributor Performance Food Group started construction on its 353,000-square-foot facility in Berkeley, Mo., which will include a meet processing and packaging plant and a vehicle maintenance area. The new facility, expected to be completed by March 2025, replaces an existing St. Louis facility and increases Performance's distribution warehousing footprint.
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Data shows the US economy is strong but Americans are feeling downbeat about its prospects. Consumer spending is resilient, inflation is falling and unemployment is low, but Americans remain concerned about their long-term financial security due to social and political risks. War abroad and elections at home have discouraged many, and additional economic improvement could fail to boost sentiment.
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