–November Inventories Drop First Since December 2009
–Inventory/Sales Ratio Drops To 1.15 From 1.17 In October
By Kevin Kastner
WASHINGTON (MNI) – The value of wholesale inventories fell 0.2% in
November, while sales posted a 1.9% increase, pulling down the
inventory/sales ratio, data released Tuesday morning by the Commerce
Department showed.
A 0.9% drop in nondurable goods inventories, led by a sharp 6.8%
retracement in farm products, was the key factor in the decline.
However, petroleum prices did post a 0.2% rise.
Within the durable goods inventories category, which rose 0.3% in
November, there was a 1.9% jump in automotive inventories and a 0.5%
rise in professional equipment inventories. These offset gains for other
components.
Sales were boosted by solid gains from both durable goods and
nondurable goods, though auto sales fell 3.6% at the wholesale level.
The inventory/sales ratio for autos climbed to 1.57, the highest level
since September 2009.
The overall inventory to sales ratio fell to 1.15 in November from
1.17 in October, and is the lowest since a matching 1.15 reading in
June. The ratio is well below the 1.19 reading in November 2009, as
sales growth has outpaced inventory growth since then.
Factory inventories were already reported up 0.8% in November, so
the outlook for business inventory growth is mixed and will depend on
retail inventories when the data are released Friday.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
