Wholesalers’ December Gains Are Strongest in Four Months

Sales at the wholesale level posted the strongest rise in four months during December, while stocks of unsold goods rose for a sixth consecutive month, the Commerce Department said Wednesday.

Total sales by merchant wholesalers were up 2.2% to a seasonally adjusted $181.16 billion, following a revised 0.7% gain in November. For the full year, wholesale sales increased 6.8%--the strongest annual gain since an 8.7% jump in 1988.

Inventories of completed goods for sale posted a modest 0.2% increase in December after a revised 0.8% November rise as relatively strong sales kept stocks from piling up.

Previously, the department said wholesale sales fell a slight 0.1% in November and that inventories had risen more sharply, by 1.2%.

The latest report shows sales in the final two months of 1994 at brisk levels.

As a result, the stock-to-sales ratio, which measures how long it would take to use up existing inventories at the current sales pace, fell to 1.30 months’ worth from 1.32 months in November. That was the lowest ratio since last March, when it dropped to 1.29 months’ worth.

Sales of cars and automotive parts rose in December by 1.2% after a 4.7% November gain. But sales of furniture and home furnishings jumped 5.6% after falling 2.3% in November, and sales of lumber and construction material were up 5.5% in December after a slim 0.1% November increase.

On the inventory side, stocks of motor vehicles and parts shrank 1.6% in December after falling 0.7% in November. Furniture inventories fell 2.2% following a 1.8% drop in November.

Stocks of non-durable products such as paper and food items increased 0.3% in December after a 1.2% gain in November.