Inventories Rise for 10th Month in a Row
U.S. business inventories rose for a 10th straight month in February as winter snowstorms led to a drop in retail sales, a government report said Monday. Total business sales fell the most in 15 months.
A 0.6% increase in stockpiles to $1.6 trillion followed a 0.3% rise in January, the Commerce Department said. Business sales fell 1% to $836.4 billion, the most since November 2001, after rising 1.3%.
Blizzards over the Presidents Day weekend deterred shoppers, leading to an unplanned buildup in supplies of automobiles, building materials and food.
The inventory-to-sales ratio, which measures the time goods sit on shelves, rose to 1.38 months in February from 1.36 months in January. That’s the highest since March 2002.
Initial reports show retail sales rebounded last month. A Commerce Department report Friday showed sales rose 2.1% in March, the highest since October 2001. That may have helped companies clear excess merchandise and prompt them to order more. Rebuilding of inventories contributes to economic growth.
Inventories at retailers, reported for the first time, rose 0.9% in February after a 0.6% gain the previous month. Sales declined 1.5% after a 0.5% increase.
Among auto dealers, inventories increased 1.8% after rising 2.1% in January, the government reported. Sales fell 3.7%.
Building materials inventories increased 2% in February after falling 0.6%.
Stockpiles at clothing stores rose 0.1% in February after a 1.7% increase the previous month, the report showed. Sales fell 1.4%.
In March, retail sales surged 2.1%, the largest increase since October 2001, when automakers rolled out incentives to spur sales in the aftermath of terrorist attacks on New York and Washington.
Stockpiles at manufacturers, which account for about 40% of the report, rose 0.4% after a 0.1% increase. Sales fell 1.5% after rising 1.9%.
Wholesale inventories, which make up about a fourth of the report, rose 0.3% after showing no change the previous month. Sales rose 0.5% after rising 1.4% a month earlier.
