Wholesale Inventories Rise

- Wholesale Inventories for October rose .8% versus estimates of a .6% gain and a downwardly revised .7% increase in September.

BOTTOM LINE: Inventories at US wholesalers rose at a faster pace in October as sales fell modestly, Bloomberg reported. The inventory-to-sales-ratio increased to 1.2 months in October versus 1.18 months the prior month. Lower oil prices limited the increases in sales as the average price of crude fell to $59.41/bbl. from $63.90/bbl. the prior month. I expect inventories to begin falling again over the intermediate-term as housing stabilizes at relatively high levels, auto production cutbacks subside and consumer spending remains healthy.