Washington, DC, June 8, 2006--Wholesale inventories tightened in March and matched the lowest level on record, as sales jumped 1.3% while inventories climbed 0.9%, the Commerce Department estimated Thursday.
The rise in sales is the largest increase since September 2005.
The inventory-to-sales ratio fell from 1.17 in March to 1.16 in April, matching the record-low level in January. Read full government report.
Tighter-than-desired inventories should lead to increased production in coming months.
Economists had been expecting a 0.5% rise in inventories in April.
Sales of nondurable goods surged 2.9%, also the strongest gain since last September. Inventories of nondurable goods rose 0.5%. The inventory-to-sales ratio for nondurables fell to a record low 0.83 from 0.85 in March.
Sales of durable goods fell 0.3% as auto sales slipped 0.1%. Inventories of durable goods rose 1.2%. The inventory-to-sales ratio for durables rose to 1.51 from 1.49.
The figures are not adjusted for price changes.
Wholesalers are middlemen operating between retailers and producers. They serve as absorbers for supply and demand shocks. Trends in wholesale trade are not considered leading indicators.
