U.S. Wholesale Inventory Growth Far Exceeds Estimates In September

Wholesale inventories in the U.S. increased by much more than expected in the month of September, according to a report released by the Commerce Department on Tuesday, with the increase due in large part to a jump in inventories of non-durable goods.
The report showed that wholesale inventories increased by 1.5 percent in September following a revised 1.2 percent increase in August. Economists had expected inventories to increase by 0.6 percent compared to the 0.8 percent growth originally reported for the previous month.
A notable increase in inventories of non-durable goods contributed to the stronger than expected growth, with inventories of non-durable goods surging up by 2.8 percent in September due largely to a 14.8 percent jump in inventories of farm products.
Inventories of durable goods also contributed to the overall growth, rising by 0.7 percent. The increase was partly due to a 3.0 percent increase in inventories of miscellaneous durable goods.
The Commerce Department also said that wholesale sales increased by 0.4 percent in September after rising by 0.5 percent in August. Sales of durable goods edged up by 0.2 percent, while sales of non-durable goods rose by 0.6 percent.
With inventories increasing at a much faster rate than sales, the wholesale inventories/sales ratio inched up to 1.18 in September from 1.17 in August. Nonetheless, the ratio remains below the 1.22 seen in September of 2009.
Next Monday, the Commerce Department is due to release a separate report on total business inventories, which include wholesale inventories as well as inventories at manufacturers and retailers. Business inventories are expected to rise by 0.6 percent in September, matching the increase seen in August.
Wholesale inventories in the U.S. increased by much more than expected in the month of September, according to a report released by the Commerce Department on Tuesday, with the increase due in large part to a jump in inventories of non-durable goods. The report showed that wholesale inventories increased by 1.5 percent in September following a revised 1.2 percent increase in August. Economists had expected inventories to increase by 0.6 percent. (Market News Provided by RTTNews)