Wholesale Inventories Steady in October

Wholesale inventories held steady in October, up 0.4 percent vs a 0.2 rise in sales that leaves the stock-to-sales ratio unchanged for a third month at a lean and healthy 1.19. Details show noticeable draws relative to sales for computer equipment, farm products, chemicals and furniture. Builds relative to sales are hard to find but do include drugs and miscellaneous nondurable goods. Wholesale inventories of autos fell sharply in the month but sales also fell. Unit sales gains for autos in November point to a draw for auto inventories in this report next month. Factory inventories have already been reported for October and showed an incremental gain and no gain relative to sales. Retail inventories for October will be reported Thursday with the business inventories report.

Recent History Of This Indicator: Wholesale inventories were up 0.3 percent in September and held steady relative to sales which rose only 0.2 percent in the month, keeping the stock-to-sales ratio in the sector unchanged at 1.19. Still, the ratio is at the high end of recent trend.