Inventories Take First Dip in 6 Months

Inventories of goods at U.S. wholesalers fell in January for the first time in six months, an early sign that businesses may be paring their stocks in anticipation of declining demand later this year. Wholesale inventories unexpectedly fell 0.5%, while sales rose 0.3%, the Commerce Department said. Analysts had expected an increase in inventories of 0.3%. At the wholesale level this year, U.S. exporters expect to find it more difficult to sell their goods in Asia and are working to adjust their stocks. The inventories-to-sales ratio, which measures the time goods sit at wholesalers, fell to 1.27 months during January from 1.28 months in December. The ratio is still above the 1997 low of 1.22 months reached in February of that year. January’s decline in wholesale inventories follows a string of five monthly increases, a buildup that could pose problems if demand drops.