Business Inventories Fall in March

Washington, DC, May 11, 2007--Business inventories declined 0.1% in March, according to the Commerce Department. It was the biggest decline in inventories since July 2005.

Retail intventories were down 0.7% during the month for drop in retail inventories in March. This washe category’s largest drop since July 2005.

Economists had forecast an increase of 0.3%.

Business sales were up 1.4%, the government. The inventory-to-sales ratio fell to 1.27 in March from 1.29 in February. This is the lowest ratio since last August.

Retail sales increased 0.9 % in March. The inventory-to-sales ratio in retail fell to 1.46 in March from 1.48 in February.

Sales at manufacturers climbed 1.5 in March, while inventories rose 0.2%. The inventory-to-sales ratio fell to 1.23 in March from 1.25 in February.