Updated: 08-Dec-17 10:42 ET
|Updated: 08-Dec-17 10:42 ET
- Wholesale inventories declined 0.5% in October (Briefing.com consensus -0.4%) following a downwardly revised 0.1% increase (from 0.3%) in September.
- Wholesale sales jumped 0.7% in October after increasing an upwardly revised 1.4% (from 1.3%) in September.
- Durable inventories increased 0.1% in October,led by a 0.3% jump in machinery inventories. A 0.7% decline in automotive inventories and a 0.6% decline in electrical inventories held back the overall increase in durable inventories.
- Nondurable inventories declined 1.3%, led by a 3.7% decrease in farm products inventories, a 2.7% decline in miscellaneous nondurable inventories, and a 2.5% decrease in drug inventories
- The inventory-to-sales ratio slipped to 1.25 in October from 1.26 in September, and was down from 1.30 in the same period a year ago
- On a year-over-year basis, total inventories were up 3.9% while total sales were up 8.4%
- The key takeaway from the report is that the sales increase outpaced the inventory increase by a sizable margin, which is a step in the right direction for wholesalers trying to regain some pricing power.
- The market doesn't typically pay much attention to this release since the full business inventories report is usually released a short time later.