Wednesday, October 10, 2007

Wholesale Inventories Rise Less Than Estimates, Sales Rise

- Wholesale Inventories for August rose .1% versus estimates of a .3% increase and a .2% gain in July.

BOTTOM LINE: Sales at US wholesalers outpaced inventories in August, a sign manufacturers may be spurred to expand production, Bloomberg reported. Sales at wholesalers climbed .4% versus a .2% gain the prior month. The inventory-to-sales ratio remains at a low 1.11. Factory inventories fell .1%, the first decline since February 2006. Sales of petroleum products also fell .1%. I continue to believe inventory rebuilding will help boost overall US growth as companies gain confidence in the sustainability of the current expansion.

No comments: