WASHINGTON – U.S. businesses reduced their stockpiles in November, as sales also slipped. The decline in inventories among manufacturers and merchant wholesalers could fan worries about economic growth slowing at the end of 2015.

November business inventories fell 0.2 per cent, after having declined 0.1 per cent in October, the Commerce Department said Friday. Sales dropped 0.2 per cent in November following a 0.3 per cent setback in October.

Manufacturing — hit hard by low oil prices and a strong dollar — appears to be the centre of the weakness. Over the past year, the sector’s inventories have slid 2.3 per cent and sales have tumbled 3.9 per cent. The report show rising sales and inventories for retailers in November, but a separate government report out Friday showed retail sales slumping in December.

Economists are already projecting slower growth for the final three months of 2015, as struggles in China, Brazil and Europe have limited the capacity of U.S. economy to expand.

The Atlanta Federal Reserve has forecast that growth was an annualized 0.8 per cent in the October-December quarter, while the private Macroeconomic Advisers estimates it will be 0.5 per cent. This would be a slowdown from annualized growth of 2 per cent in the third quarter and 3.9 per cent in the second quarter.

In a separate report, the Federal Reserve said that manufacturing production dipped 0.1 per cent in December after falling 0.1 per cent in November.