Wholesale Inventories Fall For Second Straight Month

Wholesale inventories fell a sizable 0.3 percent for a second straight month in November. Sales at the wholesale level fell an even sharper 1.0 percent in the month and, despite the decline in inventories, drove the stock-to-sales ratio up to 1.32 vs 1.31 in the two prior months. A year-ago, the ratio was at 1.23 in what is confirmation that inventories in the sector remain heavy. Inventories of farm products and petroleum rose due to weak sales while inventories of furniture and metals fell on strong sales. Previously released data on the factory sector show a 0.3 percent inventory contraction in November. The missing piece, retail inventories, will be posted following next week's retail sales report.

Recent History Of This Indicator:
Wholesale inventories, due to generally soft demand, have been heavy but at least stable in recent months. No change is expected for the November report with the low and high forecasts balanced at minus 0.3 percent and plus 0.3 percent.