Washington, DC, December 9, 2005--Inventories at wholesalers rose 0.2% in October as sales climbed 1.2%, the Commerce Department said Friday.
The inventory-to-sales ratio fell to a record low of 1.13 in October from 1.15 in September, marking the latest monthly decrease. In May, the ratio was at 1.19.
Economists were expecting inventories to expand further, by 0.5%.
Inventories rose 0.6% in September.
October wholesale sales were slower, compared to strong gains of 2.4% in September and 1.8% in August.
Durable goods made up most of the rising sales data, climbing 1.9%. Nondurable goods, meanwhile, rose 0.5% in October.
Sales of hardware, metals, furniture and electrical products all rose in October.
Drug sales fell 1.6%, while computer equipment declined 1.7%.
Financial markets rarely react to the wholesale trade statistics. They are mostly of interest to economists, who use the data to fill in gaps in their estimates of gross domestic product growth.
Wholesalers are the middlemen between manufacturers and retailers, serving as a shock absorber for the business sector. Trends in the sector usually reflect conditions in the rest of the economy and are not considered leading indicators.
