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Saturday, November 17, 2018 7:35:44 AM EST

Wholesale Inventories Updated 09-Nov-18 10:34AM ET

Wholesale inventories increased 0.4% in September ( consensus 0.3%) on top of a downwardly revised 0.9% increase (from 1.0%) in August.

Wholesale sales were up 0.2% following a 0.7% increase in August.

On a year-over-year basis, total sales were up 7.8% while total inventories were up 5.2%.

Durable inventories were up 0.8% in September, driven by increases in all durable categories.

Nondurable inventories were down 0.4% in September, pressured by a 1.7% decline in drugs inventories and a 3.8% decline in farm products inventories.

The inventory-to-sales ratio held steady at 1.26 in September, and was down from 1.29 in the same period a year ago.

The key takeaway from the report is that sales are increasing year-over-year at a faster rate than inventories, which can be a precursor to improved pricing power for wholesalers.