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Friday, November 22, 2019
HomeNewsEconomyBuildup in Business Inventories Continues to Outpace Sales

Buildup in Business Inventories Continues to Outpace Sales

A team of millennial business owners collaborating on an online project using a touchpad tablet in a modern office space. (Photo: AdobeStock/AYAimages)
A team of millennial business owners collaborating on an online project using a touchpad tablet in a modern office space. (Photo: AdobeStock/AYAimages)
A team of millennial business owners collaborating on an online project using a touchpad tablet in a modern office space. (Photo: AdobeStock/AYAimages)

Business inventories for manufacturers and trade in January rose 0.8% (±0.1%) from December to $2,013.9 billion, beating the forecast and outpacing sales. They are up 5.3% (±0.4%) from January 2018.

The consensus forecast was 0.5%, ranging from a low of 0.1% to a high of 0.6%. All data are adjusted for seasonal and trading day differences but not for price changes.

Sales are lagging, which often serves as a red flag for a slowdown.

The combined value of distributive trade sales and manufacturers’ shipments for January was estimated at $1,449.6 billion, up 0.3% (±0.3%) from December 2018 and 2.8% (±0.3%) from January 2018.

The total business inventories/sales ratio based on seasonally adjusted data at the end of January was 1.39. The January 2018 ratio was 1.36.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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