Inventories leaner relative to sales in July

September 15, 2011

Inventories relative to sales dropped throughout the economy in July, according to the U.S. Census Bureau. The inventories-to-sales ratio throughout the economy was 1.27 on a seasonally adjusted basis, slightly lower than the 1.28 recorded in both May and June. The continuation of lean inventories is good news for trucking companies because it indicates that businesses are maintaining normal replenishment cycles and that any uptick in sales should translate into shipments.

Inventories and sales both rose slightly in July over June with sales up 0.7% and inventories rising 0.4% on a seasonally adjusted basis. The inventories-to-sales ratio dropped only in manufacturing, while the ratio stayed the same in retail and increased slightly in wholesale.

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