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Wholesale Inventories Rise Much More Than Expected

The Department of Commerce released its report on wholesale trade in the month of September on Wednesday, showing that wholesale inventories rose much more than expected while wholesale sales also showed a notable increase.

The report showed that wholesale inventories rose 0.8 percent in September following an upwardly revised 0.7 percent increase in August. Economists had expected inventories to increase by 0.1 percent compared to the 0.1 percent increase originally reported for the previous month.

The bigger than expected increase in wholesale inventories reflected increases in inventories of both durable and non-durable goods. Inventories of durable goods rose by 0.7 percent, while inventories of non-durable goods increased by 1.0 percent.

As mentioned above, the Commerce Department also said that wholesale sales rose 1.3 percent in September after rising 0.8 percent in August. A 2.1 percent increase in sales of non-durable goods contributed to the strong sales growth.

With sale growth outpacing inventories growth, the wholesale inventories/sales ratio edged down to 1.10 in September from 1.11 in the previous month. In the same month last year, the ratio came in at 1.15.

Source: MoneyForex