Wholesale Inventories Unchanged Again in July

U.S. wholesalers in July held inventories steady for a second straight month, which analysts said showed that companies were still holding down costs by keeping stockpiles low, Bloomberg reported.

The Commerce Department said that wholesale stockpiles totaled $289 billion for the month, little changed from June. Sales by distributors rose 0.4% after surging 1.6%.

When inventories begin to decline, trucking companies likely would see more business as companies have more goods manufactured and delivered.

Having lean supplies at a time when demand is rising have encouraged some companies to pick up production, which may help fuel the expansion, economists told Bloomberg.

Commerce also said the inventory-to-sales ratio for July declined to 1.21 months, matching the record low reported in March. In June the ratio, which measures how long it would take for firms to use all their inventories, was 1.22.

Supplies of durable goods at wholesalers declined 0.5%, led by vehicles, machinery and furniture. Sales of durables rose 0.4% after rising 1.3% in June.

Wholesalers account for about 25% of all business inventories.

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