Business inventories for July rose 1% vs. 0.7% expected. Despite the higher than expected inventory growth, the inventory to sales ratio, which spiked during the recent crisis, eased down to 1.26 vs. 1.35 one year ago, as the sales side of the equation compensated.
Sales. The U.S. Census Bureau announced today that the combined value of distributive trade sales and manufacturers’ shipments for July, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,090.0 billion, up 0.7 per cent (±0.2%) from June 2010, and up 9.2 per cent (±0.5%) from July 2009.
Inventories. Manufacturers’ and trade inventories, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $1,375.7 billion, up 1.0 per cent (±0.1%) from June 2010 and up 2.4 per cent (±0.4%) from July 2009.
The full release is below.