Business Inventories, Sales Both Down in February

Business inventories and business sales both dipped in February, the Commerce Department reported Monday. It was the 13th consecutive month of decline for inventories, the report said.

Generally, as companies reduce their inventories through sales, they replenish their stocks with new products, boosting demand for trucking services. However, Bloomberg noted that the rate of inventory reduction has slowed for many companies.

nventory levels slipped 0.1% during February. January’s revised figures also showed a 0.1% decline, Commerce said. Analysts polled by Reuters expected a decline of 0.2%.

Companies are hesitant to add to their inventories until consumer spending picks up, Bloomberg reported.

Manufacturing sales, which account for 40% of business sales, slipped 0.4% in the month. February factory sales dropped 2.8% after an increase of 1.4% in January.

Lower sales at manufacturers and factories lead to fewer shipments, depressing demand for trucking services.

Overall business sales slipped 0.9% in February, its largest decline since November. In January, the Commerce Department restated the sales figures to be up 0.9%.

The stocks-to-sales ratio, the measure of time that it would take companies to empty their stockpiles at their current sales pace, rose from 1.37 months to 1.38, Commerce said.

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