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November Business Inventories
Updated: 08-Feb-22 19:11 ET




Highlights

  • Total business inventories declined 0.2% month-over-month in November, as expected, following a downwardly revised 0.1% increase (from 0.2%) in October.
  • Total business sales were up 0.7% following a downwardly revised 0.2% decline (from -0.1%) in October.

Key Factors

  • Manufacturers' and wholesalers' inventories were known ahead of time, so the missing variable was the report on retailers' inventories, which decreased 0.8% after increasing 0.1% in October.
  • The decrease in retailers' inventories was led by a 1.8% decline in motor vehicle and parts dealers inventories.
  • The inventories-to-sales ratio slipped to 1.39 from 1.40 in October, but it was up from 1.37 in the same period a year ago.

Big Picture

  • The key takeaway from the report is that the gap between inventory growth on a yr/yr basis (+2.8%) and sales growth (+1.0%) should help keep prices in check.
Category NOV OCT SEP AUG JUL
Inventories -0.2% 0.1% -0.1% -0.1% 0.3%
  Manufacturers 0.3% 0.2% 0.3% -0.1% 0.1%
  Retailers -0.8% 0.1% 0.1% -0.2% 0.7%
  Wholesalers -0.1% 0.1% -0.7% 0.1% 0.2%
Sales 0.7% -0.2% -0.4% 0.1% 0.2%
  Manufacturers 0.3% 0.1% -0.4% -0.3% -0.3%
  Retailers 0.4% 0.4% -0.6% 0.6% 0.8%
  Wholesalers 1.5% -0.9% -0.1% -0.1% 0.2%
Inventory/Sales 1.39 1.40 1.40 1.40 1.40
  Manufacturers 1.40 1.40 1.40 1.39 1.38
  Retailers 1.43 1.45 1.45 1.44 1.45
  Wholesalers 1.35 1.37 1.36 1.36 1.36