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Monday, January 21, 2019 4:08:22 AM EST

Wholesale Inventories Updated 07-Dec-18 10:38AM ET

Wholesale inventories increased 0.8% in October ( consensus 0.7%) on top of an upwardly revised 0.7% increase (from 0.4%) in September.

Wholesale sales were down 0.2% following a downwardly revised 0.1% increase (from 0.2%) in September.

On a year-over-year basis, total sales were up 6.8% while total inventories were up 6.9%.

Durable inventories were up 1.7% in October, driven by increases in all durable categories, with the exception of miscellaneous durables (-0.2%). Automotive inventories were up 3.4%.

Nondurable inventories were down 0.6% in October, pressured by an 8.9% decline in petroleum inventories and a 2.7% decline in farm products inventories.

The inventory-to-sales ratio increased to 1.28 from 1.27 in September and was unchanged from a year ago.

The key takeaway from the report is that inventory growth exceeded sales growth, which is a dynamic that could give way to lower pricing.