Wholesale inventories at 19-month low

WASHINGTON (Reuters) -- U.S. wholesale inventories shrank for the eighth month in a row in April to $405.4 billion, their lowest since September 2007, government data showed on Tuesday.

The 1.4% drop in inventories was greater than the 1.1% decline analysts polled by Reuters had expected, as wholesalers primarily shed stocks of metals and motor vehicles and car parts. The Commerce Department also said that March's fall was revised to 1.8% from the 1.6% drop reported last month.

Sales at merchant wholesalers fell 0.4% in April to $309.35 billion, their lowest since November 2005, after tumbling 2.4% the previous month. Analysts had forecast a 0.5% decline.

The inventory-to-sales ratio, a measure of how long it would take to deplete current stocks, fell to 1.31 months' worth from 1.32 months. In April 2008 that rate was 1.12 months.

Inventories of durable goods, items meant to last, were down 2.2% after falling 2.6% the month before, the Commerce Department said. They also dropped 5.9% from the year before.

Metals fell 6.8% in April from March, and 13.5% from a year earlier. Automotive related products such as cars were down 4.5% on the month and 14.3% on the year.

Nondurable inventories were unchanged in April, with petroleum stocks falling 1.3% on the month. Petroleum inventories also fell 9% on the year, despite rising 7.5% in March.