U.S. business inventories rise in November, likely to rise at stable rate in 2018
Source: FxWire Pro - Commentary / 12 Jan 2018 16:25:24 Eastern Standard Time
U.S. businesses increased inventories in November. Business inventories were up 0.4 percent; however, sales were up about three times that rate, rising 1.2 percent. The tell-tale signs of solid holiday sales are clear in the business inventories report for November.
Inventories dropped at clothing shops and department stores and even at stores that sell home furnishings and the big box building supply and garden centers. The store shelves were picked clean as each of those store categories also recorded month rises in sales. The overall inventory-to-sales ratio dropped again.
The strength was not restricted to the retail sector, as seen by the continued downward trend in the ratios for the wholesale and the factory sector. The survey data have been hinting at a pick-up in orders and delays in delivery times and not enough inventories at suppliers. This implies that scope for inventories will continue to grow at a stable rate in 2018, noted Wells Fargo in a research report.
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