U.S. wholesale inventories rise 0.6% in February -
Thursday, April 7, 2005 2:30:30 PM
afxpress.com
WASHINGTON (AFX) -- U.S. wholesalers built up their inventories in February as sales declined at the fastest rate in nearly two years, the Commerce Department reported Thursday
On a seasonally adjusted basis, inventories increased in value by 0.6% in February, while sales fell 0.4%, marking the biggest drop since April 2003. The inventory-to-sales ratio rose to 1.18 from 1.17, indicating inventories still remain tight. Economists surveyed by MarketWatch had been expecting February's inventories to rise about 0.8%. Inventories had increased 1% in January
The wholesale data rarely move financial markets, primarily because the figures are so outdated. They are of primary interest to economists filling in gaps in the data for their models tracking gross domestic product. Wholesalers are middlemen between manufacturers and retailers, serving as a shock absorber for the business sector. Trends in the sector typically reflect conditions in the rest of the economy
Wholesale inventories are up 11.1% in the past 12 months, with wholesale sales rising 10.6%. The data are not adjusted for price changes
In February, wholesale sales of durable goods fell 0.5%, including a 4.7% decline in electrical equipment sales -- the biggest decline in nearly four years. Automotive sales increased 2.6%. Metals sales fell 1.4% after growing 31.6% in the past year
On the inventories side, durable goods rose 1.2% in February and automotive fell 0.2%. Sales of nondurable goods fell 0.2% in February, including a 1.1% drop in petroleum and 1.7% in farm products. Stockpiles of nondurable goods increased 0.5%, with petroleum inventories increasing 2.9% and farm products rising 4.9%
In a separate report, the Labor Department said initial jobless claims fell 19,000 to 334,000 last week, while the four-week average was nearly unchanged at 336,500. |
