Inventories-to-sales ratio holds steady

January 12, 2012

For the fourth straight month, the ratio of inventories to sales was a lean 1.27 in November, according to the latest figures released by the U.S. Census Bureau. The seasonally adjusted inventories-to-sales ratio was slightly lower than the 1.28 in November 2010. The lowest seasonally adjusted ratio on record was 1.25 in March 2011. 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 ticked up to 1.34, while the ratio for retailers was unchanged at 1.34. Merchant wholesalers had an inventories-to-sales ratio of 1.15, unchanged from October.

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