2017 Economic Calendar
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Business Inventories  
Released On 11/15/2017 10:00:00 AM For Sep, 2017
PriorPrior RevisedConsensusConsensus RangeActual
Inventories - M/M change0.7 %0.6 %0.1 %0.0 % to 0.4 %0.0 %

Highlights
Business inventories were unchanged in September while sales however, tied largely to hurricane effects at the retail level, surged 1.4 percent. The mismatch pulls the inventory-to-sales ratio down 2 notches to 1.36 vs a long run at 1.38 and compared against a fat looking 1.40 in September last year.

With retail sales surging 2.1 percent in this report, retail inventories are especially lean, down 0.9 percent and largely reflecting autos where inventories fell 2.4 percent during the post-hurricane replacement surge of September. Wholesale inventories rose 0.3 percent in the month. against a 1.3 percent jump in sales, with manufacturer inventories up 0.7 percent against a 0.8 percent sales rise.

The lack of auto inventories among retailers will filter back through both the wholesale and manufacturing sectors which will have to rebuild their auto inventories. But autos are only one factor. The general need to build inventory to meet demand looks to be an increasing strength for the economy.

Recent History Of This Indicator
Business inventories have been climbing in line with the solid pace of economic growth. But after August's exceptionally strong 0.7 percent build, inventories in September are expected to rise only 0.1 percent.

Definition
Business inventories are the dollar amount of inventories held by manufacturers, wholesalers, and retailers. The level of inventories in relation to sales is an important indicator of the near-term direction of production activity. (Bureau of the Census)  Why Investors Care
 
[Chart]
Inventories tend to rise when economic conditions are strong since sales are rising at the same time, the inventory-to- sales ratio may remain stable, or rise at a very slow pace. Inventories tend to when economic conditions are weak since sales are falling at the same time, the inventory-to-sales ratio may remain relatively stable. The I- S ratio then begins to rise as sales fall more quickly than inventory growth.
Data Source: Haver Analytics
 
 

2017 Release Schedule
Released On: 1/132/153/154/145/126/147/148/159/1510/1311/1512/14
Release For: NovDecJanFebMarAprMayJunJulAugSepOct
 


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