Inventories relative to sales are lean and steady
December 13, 2011
The ratio of inventories to sales remained a lean 1.27 in October, according to the latest figures released by the U.S. Census Bureau. The seasonally adjusted inventories-to-sales ratio was unchanged from September and down from 1.29 in October 2010. The lowest seasonally adjusted ratio on record was 1.25 in March. The continuation of lean inventories relative to sales bodes well for future freight shipments as it suggests that the supply chain will need to continue steady shipments in order to avoid stock-outs.
The adjusted inventories-to-sales ratios for manufacturers and retailers were unchanged at 1.33 and 1.32, respectively, while the ratio at merchant wholesalers rose slightly to 1.16 from 1.15 in September.
On an unadjusted basis, noticeable increases in the inventories-to-sales ratio occurred in October at retail outlets that sell goods often in high demand during the holiday season, including clothing and electronics.
Click the link below to print a print-friendly page of the this analysis.Print Page
Use our chart creator to generate charts using the data that was used in this analysis.TruckGauge Chart Creator
This functionality is only available to Premium Members. Please upgrade your account to gain access to the data used in this analysis.Upgrade to a Premium Member