Close | X
Saturday, November 16, 2019 11:15:42 PM EST

Wholesale Inventories Updated 08-Nov-19 10:38AM ET

Wholesale inventories declined 0.4% m/m in September ( consensus -0.1%), on top of a downwardly revised 0.1% increase (from +0.2%) in August. That was the largest decline since October 2017.

Wholesale sales were flat in September after declining 0.1% in August.

On a year-over-year basis, total sales were down 0.6% while total inventories were up 4.8%. Durable inventories decreased 0.1% in September, driven by a 1.2% decline in automotive inventories.

Nondurable inventories fell 0.9% in September, paced by a 2.2% decrease in drugs inventories and a 4.9% decrease in farm products inventories.

The inventories-to-sales ratio held steady month-over-month at 1.36, but was up from 1.29 a year ago.

The key takeaway from the report is that it could prove difficult for wholesalers to gain pricing power given that inventory growth remains well ahead of sales growth on a yr/yr basis.