Wholesale Inventories Rise, Inventory-to-Sales Ratio at Record Lows

BOTTOM LINE: Inventories at US wholesalers rose more than forecast in August as companies made sure they had enough goods to meet demand, Bloomberg said. Sales at wholesalers in August surged 1.1% versus a .5% gain the prior month. The inventory-to-sales ratio remained at a record low of 1.15 months. Sales of durable goods to wholesalers jumped 1.4%, the most since May. Petroleum sales fell 1.6% versus a 1.5% rise the prior month. I continue to believe inventory rebuilding will accelerate over the intermediate-term as companies gain confidence in the sustainability of the current expansion.