Business Inventories Report Shows Slowing Activity

Inventories have been coming down, a reflection of easing expectations in the business outlook. Business inventories fell 0.2 percent in September following a revised 0.1 percent dip in August. The declines are in line with underlying sales and keep the inventories-to-sales ratio steady at 1.40.

Year-on-year, inventories were up 3.8 percent in September for the lowest build since March last year. Manufacturing inventories were up only 2.6 percent in September for the lowest reading since August 2017 in results that offer further evidence of slowing activity in the sector, one that is being hit by slowing in foreign demand for US goods. Inventories at retailers in September were up a year-on-year 4.8 percent with inventories at wholesalers up 3.8 percent.