Last Update: 06-Dec-19 10:24 ET
- Wholesale inventories increased 0.1% m/m in October (Briefing.com consensus +0.2%), on top of a downwardly revised 0.7% decline (from -0.4%) in September, which was the largest decline since February 2016.
- Wholesale sales were down 0.7% in October after declining 0.1% in September.
- On a year-over-year basis, total sales were down 1.4% while total inventories were up 3.8%.
- Durable inventories decreased 0.3% in October, driven by a 0.7% decline in professional equipment inventories and a 0.4% decline in automotive inventories.
- Nondurable inventories rose 0.7% in October, paced by a 4.2% increase in drugs inventories.
- The inventories-to-sales ratio increased to 1.37 from 1.36 in September and 1.30 in the same period a year ago.
- The key takeaway from the report is that it could prove difficult for wholesalers to gain pricing power given that inventory growth remains well ahead of sales growth on a yr/yr basis.