U.S. Dec. business inventories unchanged

WASHINGTON, Feb 14 (Reuters) - U.S. business inventories were unchanged in December from the prior month as sales grew 1.4 percent, a government report said on Wednesday.

December's flat reading was the weakest month for inventories since a 0.4 percent drop in July 2005, the Commerce Department said.

Analysts polled by Reuters had predicted a 0.1 percent gain in December. Inventories rose a revised 0.2 percent in November, half the previously reported 0.4 percent increase.

Business inventories include manufacturers, wholesalers, and retailers. Monthly figures are seasonally adjusted.

At the end of 2006, business inventories were up 6 percent compared to a year ago.

In December, retail inventories gained 0.3 percent, manufacturers' stocks grew 0.1 percent, while inventories fell 0.5 percent at merchant wholesalers.

The inventory-to-sales ratio was 1.28 in December, down from 1.30 in November.

Motor vehicle and parts dealers reported a 0.3 percent decline in inventories in December and a 1.0 percent increase in sales. Vehicle and parts inventories ended 2006 up 1.0 percent from a year ago.