–Sales Fall 1.2%, Inventory/Sales Ratio 1.22, High Since October 2009
–Excluding Autos, Wholesale Inventories Up 0.6%, Sales Down 1.0%
By Kevin Kastner
WASHINGTON (MNI) – The value of wholesale inventories rose 0.6% in
October, while sales were fell 1.2%, data released Tuesday morning by
the Commerce Department showed.
As a result, the overall inventory-to-sales ratio rose to 1.22 from
1.20 in September, the highest ratio reported since 1.23 in October
2009. The ratio was 1.17 in October 2011.
The value of durable inventories jumped 1.0% in the month, as auto
inventories rose 0.4%. The remaining durables components were generally
higher, with the exception of a 0.3% decline in furniture inventories.
Nondurables inventories fell 0.1% on the sharp price-related
petroleum decline, while the remaining component were mixed.
Durables goods sales fell 0.9%, led by a 3.1% decline in auto
sales. The remaining components were mixed.
Nondurable goods sales fell 1.4% due to a sharp petroleum sales
decline. There were also declines for paper and apparel, and chemicals.
Excluding the auto category, wholesale inventories would have still
been up 0.6% in October after a 1.3% rise in the previous month, an MNI
calculation showed. Sales would have been down 1.0% in October if auto
sales were excluded. This followed a 2.1% jump in September.
Before seasonal adjustment, total wholesale inventories were up
6.6% from October 2011, while total sales were up 8.2%.
Factory inventories rose 0.1% in October, based on data already
released, so the outlook for business inventory growth appears to be
positive pending the retail inventories data when they are released.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
