Business Inventories Rise As Expected

Business inventories rose 0.7 percent as expected in August, matching the 0.7 percent rise in business sales and keeping the inventory-to-sales ratio at a steady and lean 1.38 for the 3rd month in a row. Wholesalers showed the largest build in the month, at 0.9 percent, followed by retailers at 0.7 percent and manufacturers at 0.4 percent. This is a balanced and very favorable report, indicating that inventory growth, which is a positive for GDP, is rising strongly and in line with underlying demand.

Recent History Of This Indicator:
Business inventories climbed in advance data as companies tried to keep up with rising sales during August. After a modest 0.2 percent July build, business inventories are expected to rise by 0.7 percent in August led by unusual strength at the wholesale level.