Washington, D.C., January 12, 2007--U.S. business inventories stayed at a high level relative to sales in November, the Commerce Department said Friday.
U.S. business inventories increased 0.4% in November, while sales rose 0.5%.
The inventory-to-sales ratio remained at 1.30 in November for the second consecutive month. This is the highest ratio since February 2005.
The rise in inventories was slightly above estimates. Economists surveyed expected inventories to rise 0.3% in November.
Sales are up 4.0% in the past year, while inventories are up 6.9%. The figures are not adjusted for price changes.
The monthly inventory report rarely moves financial markets. Its main interest is to economists who need the data to fill in the blanks on their quarterly growth forecasts.
Much of the data in the report had been released previously.
In the retail sector, inventories fell 0.3% in November, led by declining auto inventories.
Retail auto inventories fell 1.3% in November after a 1.1% drop in the previous month.
Excluding autos, retail inventories increased 0.3%.
Sales of autos were flat in November.
Total wholesale inventories rose 1.3% in November, while manufacturing inventories climbed 0.2%.
Sales of clothing stores fell 0.7% in November, while building material sales fell 0.5%.
In other reports released Friday, the Commerce Department reported solid retail sales growth in December.
The Labor Department said import prices jumped in the final month of 2006.
