Inventories Fall Again in August

Inventories at U.S. companies fell again in August as declines at manufacturers and wholesalers countered a boost in retailer stockpiles.

Unsold goods on shelves and back lots fell 0.1%, the Commerce Department said. Analysts expected a decline of 0.3%. Sales rose 0.1%. The inventory-to-sales ratio, which measures the time goods sit at businesses, was unchanged at 1.42 months in August.

The numbers suggest that retailers were becoming optimistic about sales prospects before the Sept. 11 terrorist attacks. The pressure on businesses to trim stockpiles has grown since then.

Inventories have been decreasing since February, the longest string of declines since February-August 1991, when the U.S. was emerging from recession.

Retail inventories rose 0.6% in August as sales rose 0.3%.

Stockpiles at manufacturers, which account for about 40% of the report, fell 0.7% in August as sales fell 0.5%.