US wholesalers' inventories fell unexpectedly in August while sales of goods posted a solid rise, the government said today, in a sign companies may need to build up depleted supplies to keep up with demand.
Wholesale stocks dropped 0.2 per cent in August, the Commerce Department said, after no change in July. Analysts were expecting inventories to increase 0.1 per cent.
Boosted by demand for machinery and non-durable goods, sales climbed 0.4 per cent in August after rising 0.5 the previous month.
The inventory-to-sales-ratio, which measures the amount of time it takes deplete supplies at the current sales pace, fell to 1.20 months, the lowest on record.