WASHINGTON, (Reuters) - U.S. wholesale inventories fell slightly more than initially estimated in October as sales increased strongly, suggesting that inventory investment will probably not provide a large boost to economic growth in the fourth quarter.
The Commerce Department said on Friday that wholesale inventories dropped 0.5 percent after edging up 0.1 percent in September. The department reported last month that wholesale inventories declined 0.4 percent in October.
The component of wholesale inventories that goes into the calculation of gross domestic product - wholesale stocks excluding autos - fell 0.5 percent in October.
Inventory investment contributed eight-tenths of a percentage point to the economy's 3.3 percent annualized growth pace in the third quarter.
Inventory investment increased solidly in the third quarter after slowing sharply at the start of the year.
Auto inventories fell 0.7 percent in October after a similar drop in September. There were decreases in inventories of computer, electrical and professional equipment, among others.
Sales at wholesalers advanced 0.7 percent in October after surging 1.4 percent in September. Sales of motor vehicles jumped 3.4 percent in October after rising 0.8 percent the prior month.
At October's sales pace it would take wholesalers 1.25 months to clear shelves, down from 1.26 months in September.
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