U.S. Wholesale Inventories Drop In Line With Estimates In October

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While the Commerce Department released a report on Friday showing a drop in U.S. wholesale inventories in the month of October, the report also showed a sharp increase in wholesale sales during the month.

The Commerce Department said wholesale inventories fell by 0.4 percent in October after inching up by 0.1 percent in September. The drop in inventories matched economist estimates.

Inventories of durable goods slipped by 0.3 percent, as a notable decline in inventories of metals and minerals offset a jump in inventories of furniture and home furnishings.

The report said inventories of non-durable goods were down 0.4 percent amid a steep drop in inventories of drugs and druggists' sundries.

Meanwhile, the Commerce Department also said wholesale sales surged up by 1.4 percent in October after rising by 0.4 percent in September.

Sales of durable goods jumped by 1.1 percent amid significant increases in sales of electrical and electronic goods and metals and minerals.

The report said sales of non-durable goods also shot up by 1.6 percent, as sales of farm product raw materials and petroleum and petroleum products soared.

With inventories falling and sales rising, the inventories/sales ratio for merchant wholesalers dipped to 1.30 in October from 1.32 in September.

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