Business Inventories Flat in January

Washington, DC, March 12, 2010--Business inventories were essentially flat in January despite an eighth consecutive sales increase.

The Commerce Department said Friday that inventories were unchanged, a weaker reading than the 0.2 percent gain that analysts had expected.

Total business sales rose by 0.6 percent.

The flat reading on inventories followed a 0.3 percent drop in December. It came from a 0.2 percent increase in inventories held by manufacturers and declines of 0.1 percent in retail inventories and 0.2 percent in wholesale inventories.

Wholesalers hold 25 percent of all inventories with factories holding about one-third and retailers holding the rest.