WASHINGTON – Business inventories increased 0.2% in October, the first increase in 13 months, the Commerce Department reported today.
Total business sales increased 1.1% in October, the fifth consecutive monthly increase.
The inventories-to-sales ratio dropped to 1.30 for October, the lowest level since July 2008.
Economists polled by Thomson Reuters expected business inventories to decline 0.3 in October, according to the median estimate. Business inventories declined 0.5% in September revised from the 0.4% decline initially reported.
Manufacturers’ inventories increased 0.4%, inventories rose 0.3% at merchant wholesalers and were unchanged at retailers in October. The total inventories increase was the largest since July 2008.
Total retail inventories, excluding motor vehicles, declined 0.2%. Total motor vehicle and parts inventories increased 0.6%.
Wholesale inventories increased in October also for the first time since August 2008, the Commerce Department reported on Wednesday. The inventory increases this week may signal that businesses have started adding supply after shedding inventories amid the recession.
