Business Sales Outpace Inventory Gain
January 14, 2014 by UPI - United Press International, Inc.
WASHINGTON (UPI) — Business manufacturing and trade sales rose faster than inventories in November, the U.S. Census Bureau said Tuesday.
Sales rose 0.8 percent to $1.318 trillion, while inventories rose 0.4 percent to $1.699 trillion.
The monthly figures adding up manufacturing and trade inventories were slightly higher than the consensus forecast, which called fore a 0.3 percent inventory gain.
Inventories and sales were both up 4 percent from November 2012.
The total business inventories-to-sales ratio was 1.29, based on seasonally adjusted data, unchanged from a year earlier.
The ratio indicates how long it will take to sell existing inventory at current prices. As the ratio rises, it indicates manufacturers may have too much inventory on hand and may adjust by slowing production.