The September 2010 Business Inventories were released today with a less than favorable showing. The Business Inventories report measures change in the total value of goods held in inventory by manufacturers, wholesalers, and retailers and is issued 45 days after the month ends. It is considered to be a leading indicator of future business spending as inventories are being depleted, businesses are going to have to spend more to create more inventory ( also has a correlation to consumer spending). The forecast called for a 0.6% increase, but the actual headline number showed a 0.9% decrease. Retailers did better than manufacturers and Merchant wholesalers, as sales increase was higher than the inventories increase. Merchant Wholesalers doing the worst.
| Industry | Inventories | Sales |
|---|---|---|
| Manufacturers | 0.66% | 0.40% |
| Retailers | 0.77% | 0.79% |
| Merchant Wholesalers | 1.51% | 0.41% |
A link to the report can be obtained here.
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