Washington, DC, January 10, 2007--Inventories at U.S. wholesalers rose 1.3% in November while sales increased 1.0%, the Commerce Department said Wednesday.
As a result, the inventory-to-sales ratio rose to 1.20 in November from a revised 1.19 in October. This is the highest ratio since June 2005. It hasn't been higher since Nov. 2003.
The increase in inventories was much higher than the 0.5% expected by economists.
Inventories had increased a revised 0.4% in October, down from 0.8% originally estimated.
Inventories are up 10.6% in the past year. Sales are up 7.9% in the past year.
Wholesale inventories of nondurable goods increased 2.8%, the biggest increase since April 1996. Nondurable sales rose 0.7%. The inventory-to-sales ratio rose to 0.87 from 0.85
Wholesale inventories of durable goods increased 0.5% in November while sales increased 1.2%. The inventory-to-sales ratio fell to 1.53 from 1.54.
Petroleum inventories rose 3.1% while sales increased 5.7%.
Auto inventories rose 0.6%, while sales rose 5.0%. This was the largest increase in auto sales since February 2004.
