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Monday, January 21, 2019 4:09:16 AM EST




Business Inventories
Briefing.com Updated 14-Dec-18 10:21AM ET

Total business inventories increased 0.6% in October, in-line with the Briefing.com consensus estimate, after increasing an upwardly revised 0.5% (from 0.3%) in September.

Total business sales increased 0.3% after increasing a downwardly revised 0.3% (from 0.4%) in September.

Manufacturers' and wholesalers' inventories were known ahead of time, so the missing variable was the report on retailers' inventories, which increased 0.8% after increasing 0.1% in September.

Retailers' inventories were led by increases in all categories, including a 1.1% increase for motor vehicle inventories, a 1.0% increase for clothing and accessories stores inventories, and a 0.8% increase in general merchandise stores inventories.

On a year-over-year basis, total business inventories were up 5.2% while total business sales were up 6.1%.

The inventories-to-sales ratio held increased to 1.35 to 1.34 but was down from 1.36 in the same period a year ago.

The key takeaway from the report is that business sales rose at a slower pace than inventories. That distinction, if it persists, will diminish pricing power.
 
OCTSEPAUGJULJUN
Inventories0.6%0.5%0.5%0.7%0.1%
Manufacturers0.1%0.6%0.1%0.9%0.2%
Retailers0.8%0.1%0.6%0.6%-0.1%
Wholesalers0.8%0.7%0.9%0.6%0.1%
Sales0.3%0.3%0.5%0.2%0.3%
Manufacturers-0.1%0.7%0.7%0.0%1.0%
Retailers1.2%0.0%-0.1%0.5%0.1%
Wholesalers-0.2%0.1%0.7%0.2%-0.2%
Inventory/Sales1.351.341.341.341.33
Manufacturers1.341.341.341.351.34
Retailers1.441.441.441.431.43
Wholesalers1.281.271.261.261.25