Washington, DC, Apr. 8--Inventories at U.S. wholesalers soared in February, the Commerce Department reported Thursday.
Wholesalers boosted their inventories 1.2 percent in February in response to a 1.3 percent increase in sales.
This is the biggest rise in inventories since November 1999.
The rise was much larger than expected. The consensus forecast of Wall Street economists was for inventories to rise 0.3 percent.
The inventory-to-sales ratio remained at a record low 1.17 in February for the third straight month.
With inventories so tight, any increase in demand is being matched immediately by new orders to manufacturers.
In February, durable goods inventories rose 1.1 percent while sales increased 2.1 percent. The inventory-to-sales ratio for durable goods fell to a record low 1.45 in February.
Automobile sales rose 5.4 percent in February, the largest increase in five years. Automobile inventories were up 1.4 percent.
Electrical inventories rose 3.0 percent in February, the largest increase since December 1994.
Nondurable goods inventories increased 1.4 percent in February while sales rose 0.6 percent. The inventory-to-sales ratio for nondurable goods rose to .90 in February from a record low 89 in January.
The increase in nondurable inventories was led by drug inventories, which rose 3.8 percent, the largest increase since December 2002. Inventories of farm products rose 5.2 percent.
