Inventories Rise to Record Level; Sales Post Largest Increase Ever

Click here to write a Letter to the Editor.

nventories at U.S. businesses rose 0.7% in March to a record level, while business sales rose 2.9%, the largest increase ever, the Commerce Department reported Friday.

The March gain in inventories was the seventh straight and brought their value to $1.205 trillion. Inventories had risen a revised 0.8% in February, the biggest increase since June 2000. Business sales were a record $928.7 billion.

Supplies of goods held at manufacturers, wholesalers and retailers in March were enough to last 1.30 months at the current sales rate, for the lowest inventory-sales ratio on record. This indicates companies may need to increase orders and production to keep up with demand, Bloomberg reported.

Inventories at manufacturers, which make up 40% of the report, rose 0.3% after a 0.6% gain in February. Factory orders rose 3.8% in March, the biggest increase since July 2002.

Commerce also said wholesale inventories rose 0.6% and sales rose 2.7%. On the retail side, stockpiles gained 1.1% and sales rose 2.1%

Retail inventories of motor vehicles and parts rose 1.9%, the biggest increase since October 2002.