–Sales Up Last 13 Months; April Keeps Inventory/Sales At Record Low
By Kevin Kastner
WASHINGTON (MNI) – The value of business inventories rose in April
for the fourth straight month, but another gain in business sales kept
the inventory/sales ratio at a record low, data released Friday morning
by the Commerce Department showed.
The 0.4% rise in business inventories was slightly below the 0.5%
gain expected. Retail inventories rose only 0.2% to offset the larger
gains already announced for factory and wholesale inventories in the
month.
Business sales rose 0.6% in April, a 13th consecutive increase that
puts sales 13.1% ahead of their April 2009 level after seasonal
adjustment and up 13.6% before seasonal adjustment. In contrast,
inventories are 2.8% below their year-ago levels, both before and after
seasonal adjustment.
The inventory-to-sales ratio held steady at 1.23 in April, matching
the record low in March remaining well below the 1.43 ratio in April
2009. The data, especially the ratio, are an indication that businesses
are still cautiously holding the line against overstocking despite clear
signs of sales improvement.
Retail auto inventories posted a 0.4% decline in April. Excluding
that drop, retail inventories would have been up 0.4% and total business
inventories would have been up 0.5%, based on a Market News
International calculation.
The remaining retail components showed drop in food and beverage
inventories, but gains in inventories of furniture, building materials,
and at general merchandise stores.
** Market News International Washington Bureau: 202-371-2121 **
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