|
Inventories slow growth
|
 |
December 11, 2000: 11:03 a.m. ET
Oct. U.S. wholesale inventories grow by smaller-than-expected margin
|
NEW YORK (CNNfn) - U.S. wholesale inventories rose at a slower-than-expected pace in October, while wholesale merchants' sales were unchanged, the Department of Commerce reported on Monday.
The agency said supply of unsold goods rose 0.3 percent, to $327.4 billion, a rate of growth smaller than the 0.4 percent swell expected by Wall Street. The wholesale data includes inventory statistics from the second stage of the manufacturing process.
Merchants' sales were flat at $251.1 billion, the report said.
| |
 U.S. WHOLESALE INVENTORY DATA
|
|
| |
|
Oct. Inventories up 0.3 pct
Forecast was 0.4 pct growth
Oct. Inventories at $327.4B
Sales were flat at $251.1B
Sept. growth revised to flat
Sept. growth was 0.2 pct
|
|
|
The government data suggests that companies may have become wary about the willingness of shoppers to spend in the closing months of the year. Wholesalers typically boost inventories if they fear scarce supplies or when they expect consumer demand and sales to rise.
Among durable goods, inventories of electrical goods increased 2.7 percent from last month, while machinery, equipment and supplies were down 1.1 percent. Among non-durable goods, inventories of paper and paper products increased 2.0 percent from September, while apparel, piece goods and notions fell 1.4 percent.
September's inventory levels were revised downward to unchanged from an initial 0.2 percent gain reported a month ago; September sales were also revised downward to a 0.5 percent gain.
The revision of September's figures brings to a halt a string of 19 consecutive months in which inventories had risen. When the September figures were first revealed, they showed that wholesalers' stockpiles grew at the slowest pace since April 1999, when inventories rose a paltry 0.1 percent.
For wholesale goods overall, the stock-to-sales ratio held steady at 1.30 months' worth for the fourth month in a row. The ratio measures how long it would take to deplete inventories at the current sales pace.
Wall Street stocks were little affected by the report. Experts note that the sales figures say close to nothing about personal consumption and therefore do not typically move the market.
The report was the first in a line of economic indicators due this week. Later this week, the market will take a look at reports on consumer spending, and inflation. 
|
|
|
|
|
 |
|
