Businesses trimmed inventories at the wholesale level again in January even though sales rose for a 10th consecutive month. The dip in inventories underscored that businesses remain cautious about restocking their depleted shelves.
The Commerce Department said yesterday that inventories at the wholesale level were reduced 0.2 percent in January following a 1 percent drop in December. Sales were up 1.3 percent, the best showing since a 3.6 percent rise in November.
Economists are hoping that the steady gains in sales will soon prompt a sustained rebound in inventory restocking. That would trigger increased factory production and provide support for the fledgling recovery.
With the January drop in inventories, the ratio of inventories to sales dipped to a record low of 1.10, meaning it would take 1.10 months to deplete inventories at the wholesale level given the January sales pace. That was the lowest point since the data series began in 1992.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement