Business Inventories Drop in December

U.S. business inventories fell in December to the lowest level in two years--another sign the economy is working out the excesses of the late-1990s boom and readying for a turnaround, analysts said.

In a separate report, the government said the number of workers seeking first-time jobless benefits fell 8,000 to a seasonally adjusted 373,000 in the week ended Feb. 9. The four-week moving average of claims fell to 376,000, its lowest level since mid-August.

The business inventories data showed manufacturers, wholesalers and retailers overall recorded a 0.4% decline in the value of goods on their shelves in December, to a seasonally adjusted $1.14 trillion, the Commerce Department said. It followed a revised 1.2% November decrease.

Goods stockpiles were down 6% in December from a year earlier. Business sales in December inched up to $817.5 billion from $817.3 billion in November.

Also, the Labor Department said U.S. import prices rose 0.4% in January.