Wholesale inventories in the U.S. fell by slightly more than anticipated in the month of August, according to a report released by the Commerce Department on Friday.
The Commerce Department said wholesale inventories dipped by 0.2 percent in August after edging down by 0.1 percent in July.
Economists had expected inventories to slip by 0.1 percent after originally showing virtually no change in the previous month.
The bigger than expected drop in wholesale inventories reflected a continued decline in inventories of non-durable goods, which fell by 0.7 percent in August after sliding by 0.8 percent in July.
Inventories of farm product raw materials and apparel, piece goods, and notions showed significant decreases during the month.
Meanwhile, the report said inventories of durable goods crept up by 0.2 percent in August after climbing by 0.3 percent in July, with inventories of computers, peripheral equipment and software rising sharply.
The Commerce Department also said wholesale sales climbed by 0.7 percent in August after falling by 0.6 percent in the previous month.
The rebound in wholesale sales came as a 2.0 percent jump in sales of non-durable goods more than offset a 0.5 percent drop in sales of durable goods.
Sales of farm product raw materials and beer, wine, and distilled alcoholic beverages rose sharply, while sales of machinery, equipment, and supplies saw a steep decline.
With inventories falling and sales rising, the inventories/sales ratio for merchant wholesalers dipped to 1.33 in August from 1.34 in July.
by RTT Staff Writer
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