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US business inventories in October rose at their sharpest pace in three months, the Commerce Department said Tuesday.
Total inventories rose 0.4 pct, compared with a 0.5 pct gain economists had expected. Business sales fell 0.2 pct in the month.
The inventory-to-sales ratio rose a tick to 1.31, a figure that means the typical business had about 39.9 days of sales on hand in the backroom in October. After a sustained period of historically low ratios, the inventory-to-sales ratio is now at its highest level since February 2005.
The department s estimate for inventories in September was revised lower to a 0.3 pct increase, compared to a 0.4 pct increase estimated last month.
In the past year, sales have risen 3.6 pct, while inventories have risen 7.3 pct.
The figures are not adjusted for price changes.
Total retail inventories remained unchanged in October after falling 0.3 pct in September. Auto retail inventories fell 0.6 pct in October after falling 1.4 pct September. |
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