WASHINGTON (Reuters) - U.S. business inventories rebounded in January as declining sales boosted stocks at wholesalers, which could see inventories contributing to economic growth in the first quarter.

Inventories increased 0.3% after declining 0.2% in December, the Commerce Department's Census Bureau said on Monday.

The rise in inventories, a key component of gross domestic product, was in line with economists' expectations.

Inventories increased 2.3% on a year-on-year basis in January. Inventories are the most volatile component of GDP. Private inventories were almost depleted in the fourth quarter amid strong consumer spending, some of it fueled by pre-emptive buying ahead of tariffs on imports.

Inventories subtracted from GDP growth in the fourth quarter, restricting economic growth to a 2.3% annualized rate. GDP estimates for the January-March quarter range from a 2.4% pace of contraction to a 1.3% growth rate.

Retail inventories were unchanged rather than dipping 0.1%, as estimated in an advance report published last month. They dropped 0.5% in December.

Motor vehicle inventories tumbled 1.0% instead of the previously reported 1.1% drop. They fell 1.5% in December.

Retail inventories excluding autos, which go into the calculation of GDP, gained 0.5%, instead of 0.4% as previously reported. They slipped 0.1% in December.

Wholesale inventories increased 0.8% in January, while stocks at manufacturers edged up 0.1%.

Business sales fell 0.8% in January after advancing 1.0% in December. At January's sales pace, it would take 1.37 months for businesses to clear shelves, up from 1.35 months in December.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)