Business Inventories Continue To Edge Higher

Inventories continue to edge incrementally higher, up 0.2 percent in August and in line with a 0.2 percent rise in sales to keep the inventory-to-sales ratio unchanged for a third month at a lean 1.39. Inventories at wholesalers fell 0.2 percent in August while inventories at manufacturers rose 0.2 percent. Inventories at retailers, boosted by swelling at auto dealers, rose a sharp 0.6 percent in a build, however, that looks manageable given this morning's solid retail sales report for September, one that is headed by strength in vehicle sales.

Recent History Of This Indicator:
Business inventories have been holding steady at lean levels. Advance data on retail inventories did rise a sharp 0.5 percent in data for August but wholesale inventories fell 0.2 percent with factory inventories up only 0.1 percent. Forecasters see total August inventories coming in at plus 0.1 percent.