The U.S. Department of Commerce noted that businesses increased inventories in November due to rising consumer demand. Business inventories rose at a rate of 0.8 in October and 0.3 in November. The rise likely accelerated growth in the economy towards the end of the year, and is a good sign for the economy as it indicates that the private sector is expecting elevated consumer spending.
Earlier in the week, the Fed reported that the last six weeks of the year were the best seen in a long time. The growth was largely due to rising sales in the Automobile and Travel sectors.
The Federal Reserve’s beige book estimated fourth quarter GDP growth to be approximately 3 percent, and improvement over the summer slog of 1.8 percent.
The economic growth might be spilling over to the housing sector as well. Yesterday, Home Depot announced plans to hire more than 70,000 new employees in the Spring. The home improvement chain also raised its full year outlook for the third time in six months.