Updated: 09-Feb-18 10:21 ET
|Updated: 09-Feb-18 10:21 ET
- Wholesale inventories increased 0.4% in December (Briefing.com consensus +0.2%) following a downwardly revised 0.6% increase (from +0.8%) in November.
- Wholesale sales jumped 1.2% in December on top of an upwardly revised 1.9% increase (from 1.5%) in November.
- Durable inventories increased 0.4% in December, led by a 0.7% jump in auto inventories and a 1.7% increase in automotive inventories that was offset partially by a 0.2% decline in machinery inventories
- Nondurable inventories increased 0.4% with inventory increases across most business categories. The main exception was petroleum inventories, which declined 3.4%.
- The inventory-to-sales ratio slipped to 1.22 in December from 1.23 in November, and was down from 1.29 in the same period a year ago
- On a year-over-year basis, total inventories were up 3.4% while total sales were up 9.1%
- 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.