Business Inventories Fall 0.1% in July as Demand Increases

Inventories at U.S. businesses declined 0.1% in July as companies used stockpiled goods to meet an increase in demand, the Commerce Department reported Monday.

The value of goods on hand at manufacturers, wholesalers and retailers fell to $1.180 trillion following no change in June. Sales jumped 1.6% to $862.9 billion.

hen inventories decline, trucks are used to transfer the goods that are used to restock shelves.

Economists had forecast a 0.1% decrease in July inventories after an initially reported 0.1% rise a month earlier, Bloomberg said.

Inventories at manufacturers, which account for about 40 percent of the total business inventory report, declined 0.5%

fter a 0.3% decrease. Factory sales rose 2.5% in July after a 1.5% increase.

The inventory-to-sales ratio fell to 1.37 months, the lowest ever, from 1.39 months, today's report showed. The ratio measures how long it would take in months for a firm to sell all of its current inventory.

10619