–July Inventories Rise Largest Since July 2008; Most Categories Up
By Kevin Kastner
WASHINGTON (MNI) – The value of wholesale inventories posted their
largest monthly gain in two years in July, while sales rebounded from
their recent declines, data released Friday morning by the Commerce
Department showed.
The 1.3% rise in wholesale inventories, which was led by solid
gains in all but four categories, was in line with the 1.0% rise in
factory inventories that was already announced. Business inventories are
likely to post a solid gain unless there is a larger drop in retail
inventories.
Wholesale sales were up 0.6% in July after 0.5% declines in each of
the last two months. Gains in petroleum, electrical equipment, and
machinery were the key factors.
As a result of the large inventory gain, the inventory-to-sales
ratio rose to 1.16 in July, a third straight monthly increase. The ratio
was still well below the 1.27 reading a year ago, an indication that
wholesalers are still cautiously holding the line on stocks despite
signs of sales improvement.
On a not-seasonally adjusted basis, wholesale inventories were up
2.4% from a year ago, but sales were up 9.8% over that period.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
