10 October 2012, 19:10  Wholesale inventories in the U.S. rise

Wholesale inventories in the U.S. rose by slightly more than expected in the month of August, according to a report released by the Commerce Department on Wednesday, with the report also showing a rebound by wholesale sales. The Commerce Department said wholesale inventories increased by 0.5 percent in August following a downwardly revised 0.6 percent increase in July. Economists had expected inventories to rise by 0.4 percent compared to the 0.7 percent growth originally reported for the previous month. The increase in inventories was largely due to a 1.2 percent increase in inventories of non-durable goods, which mainly reflected a 9.4 percent jump in inventories of petroleum and petroleum products. Inventories of durable goods edged up by 0.1 percent in August, with a 1.7 percent increase in inventories of machinery, equipment, and supplies partly offset by a 5.1 percent drop in inventories of computer and computer peripheral equipment and software. The report also showed that wholesale sales rose by 0.9 percent in August after edging down by a revised 0.2 percent in the previous month. Sales of non-durable goods increased by 0.9 percent amid a notable increase in sales of petroleum and petroleum products, which surged up by 5.6 percent. The Commerce Department said sales of durable goods also increased by 0.9 percent due in part to a 2.0 percent increase in sales of motor vehicles and motor vehicle parts and supplies. With sales rising at a faster pace than inventories, the inventories/sales ratio edged down to 1.20 in August from 1.21 in July. The ratio came in at 1.17 in August of 2011.

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