–Retail Auto Inventories Rose 0.2%; Retail Ex Auto Down 0.1%
–Business Sales Rose 0.7%, Inventory/Sales Ratio Still 1.27

By Kevin Kastner

WASHINGTON (MNI) – The value of business inventories rose 0.8% in
October, though retail inventories were flat, offsetting the strong
gains already announced for the manufacturing and wholesale sectors,
data released Tuesday morning by the Commerce Department showed.

Analysts in a Market News International survey had expected
business inventories to rise 0.9%.

Retail motor vehicle inventories rose 0.2% in October as motor
vehicle sales rose 0.8% that month following a 4.4% increase in the
previous month.

The remaining retail inventories categories combined for a 0.1%
decrease on declines in the building materials, food, and department
store categories.

In addition, a Market News International calculation of retail
inventories not included in the published categories shows a 0.4%
decline after a 0.1% decrease in the previous month.

Factory inventories were already reported up 0.9% in the month,
while wholesale inventories rose 1.6%. Overall business inventories
would have been up 0.9% in October if the small increase in retail motor
vehicle inventories was excluded, a Market News International
calculation showed.

Meanwhile, business sales rose 0.7% in October, with retail sales
excluding food services up 0.6% in the month. Wholesale sales were
already reported as up 0.9%, while manufacturing shipments, which are
equal to sales in this report, rose 0.6%.

Business sales were up sharply from a year ago, running 10.4% ahead
of their October 2010 level before seasonal adjustment and 10.9% after
seasonal adjustment.

At the same time, inventories were 8.7% above their year-ago levels
both before and after seasonal adjustment.

In October, the inventory-to-sales ratio held steady at 1.27, but
was down from the 1.29 ratio in October 2010 as the sales gain over the
last year outpaced the inventories increase.

** Market News International Washington Bureau: 202-371-2121 **

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