Wholesale Inventories See An Upward Movement

Inventories at U.S. wholesalers rose 0.3% recently as stocks of nondurable goods posted the biggest percentage increase in 5 months. Wholesale sales outpaced inventories in April, rising 1.3% after a 2.1% gain in March. The rise in inventories matched economists' expectations for a 0.3%.

The March inventory gained 0.4% while the March wholesale sales increased upward to 2.1%.

The inventories-to-sales ratio, a measure of how quickly stocks would be depleted at the current sales pace, fell for the fourth straight month, indicating high sales.

Stocks of durable goods, items meant to last at least three years, fell 0.5% in April, the biggest drop since July 2003, after a 0.1% decline in March. Inventories of nondurables rose 1.6%, the biggest rise since a 2.0% increase in November 2006, after a 1.1% increase in March.

Automotive inventories fell 3.5%, the largest drop since a 4.0% fall in April 1998

(Source: CNN Money)