Washington, DC, October 10, 2005—Wholesale sales increased 1.3% in August, for the the fastest gain since April, according to the Commerce Department.
Inventories also increased at the fastest rate since April, rising 0.5%, slightly better than the 0.3% expected by economists surveyed by MarketWatch.
The inventory-to-sales ratio dipped to 1.17, indicating lean stockpiles and matching the low of the year.
Financial markets rarely react to the wholesale trade data. They are chiefly of interest to economists, who use the data to fill in gaps in their estimates of gross domestic product.
July sales were unrevised at a 0.5% increase, while July inventories were revised from a 0.1% decline to a 0.1% increase.
August sales were paced by a 1.9% gain in durable goods, including a 5% increase in autos. Sales of nondurable goods increased 0.7%, including a 5.1% rise in petroleum sales.
The increase in inventories was led by petroleum and chemicals. Nondurable inventories increased 1.2%, while durable inventories rose 0.1%. Auto inventories fell 1.1%.
In durable goods, the inventory-to-sales ratio fell to 1.47, the lowest since January. The auto inventory-to-sales ratio plunged to 1.30 from 1.38 and is the lowest in three years.
In nondurable goods, the inventory-to-sales ratio rose to 0.87, including a record low 0.99 for drugs.
