Factory Inventories Stable In July

Factory inventories held stable in July as did wholesale inventories, down 0.1 percent against a 0.3 percent decline in sales that leaves the stock-to-sales ratio unchanged at 1.30. Wholesale inventories look light for machinery and apparel but heavy for farm products and metals.

The nation's inventories are heavier than they were last year which may limit future production and hiring. Next data on inventories will be the business inventories report on Tuesday.

Recent History Of This Indicator
Concerns of an inventory overhang are centered in wholesale where wholesale inventories are expected to rise 0.3 percent in July following a June surge of 0.9 percent. The stock-to-sales ratio in the wholesale sector has been on a climb, to 1.30 in June from 1.19 in June last year.