Your Economy (No Politics)

[Bullwinkle]

U.S. Feb. wholesale inventories rise 0.8% -
Friday, April 7, 2006 2:34:55 PM
http://www.afxpress.com


WASHINGTON (AFX) -- Inventories at U.S. wholesalers increased by 0.8% in February, while sales were flat, the Commerce Department estimated Friday

The inventory-to-sales ratio rose to 1.17 from a record low 1.16 in January

Economists surveyed by MarketWatch had been expecting a 0.5% rise in inventories in February. January's inventory gain was revised to 0.2% from 0.1% earlier. The 0.2% rise in sales of durable goods was due almost entirely to a 1.7% rise in auto sales. Inventories of durable goods rose 0.6%, led by a 1.8% increase in auto inventories. The inventory-to-sales ratio for durables rose to 1.49 from 1.48. Sales of nondurable goods fell 0.1%, led by a 1.6% drop in petroleum sales

The figures are not adjusted for price changes

Inventories of nondurable goods rose 1% in February, led by a 2.6% increase in drug inventories, which had been severely depleted. The inventory-to-sales ratio for nondurables rose to 0.86 from 0.85

In a separate report released Friday, the Labor Department said wage gains were mild in March despite robust hiring and a decline in the nation's jobless rate to a five-year low. U.S. financial markets cheered the tame inflation report. Markets rarely react to the wholesale trade report, especially on a day when the employment report is released. The figures are chiefly of interest to economists trying to tweak their estimates of gross domestic product

Wholesalers are middlemen operating between retailers and producers. They serve as absorbers for supply and demand shocks. Trends in wholesale trade are not considered leading indicators.

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1144420493-f05e0f08-27949