Wholesale Inventories Fall 0.2%

 

March 10, 2010 

 

Inventories at US wholesalers continued falling in January, declining 0.2% after a 1.0% decline in December. Inventories of durable goods fell 0.5% in January while inventories of nondurable goods actually increased 0.3% in January. Sales of wholesale goods increased 1.3% in January after a 1.2% increase in December. Over the last year, sales of wholesale goods have increased 10.5%. Sales of durable goods increased 0.3% in January as automotive and computer sales saw increased demand. Sales of nondurable goods also increased in January, climbing 2.0% with groceries (+2.4%) and petroleum (+2.0%) sales leading the way. The inventory to sales ratio fell to 1.10 months in January from 1.12 months in December and 1.35 months in January 2009. This level of inventories is the lowest since the record-keeping began in 1992 and has fallen after 10 consecutive months of increasing sales. The decline in inventory levels means that producers will continue to keep increasing production to keep pace with the growing pace of sales.

  

Kristin Brewer

Senior Portfolio Manager