Wholesales Inventories Fall Again, Sales Rise

Washington, DC, Oct. 8, 2009--Wholesale inventories fell by a larger than expected 1.3% in August, marking the 12th consecutive month of inventory draw-downs, the Commerce Department said.

Economists were expecting inventories to fall 1.0% after reportedly falling 1.4% in July. Total inventories are now down 14.7% over the year.

Last month's inventory cut back was carried by a 1.6% decline in durable stocks, including a 2.3% decline in auto inventories. Non-durable goods inventories declined 0.9%.

Commerce also reported today that wholesale sales increased by 1.0%, more than the 0.7% economists were expecting. Despite increasing for five consecutive months, wholesale sales are still down 17.7% over the year.