Wholesale inventories in the U.S. fell 0.1% in August, the Commerce Department said Tuesday. This is the sixth straight monthly decline.
The drop in August matched expectations of economists polled by the Wall Street Journal. It was also in line with advance estimates. Inventories fell a revised 0.3% in July.
Inventories of motor vehicles rose 2.1%, following a 0.3% gain in July.
Sales at wholesalers rose 1.8% in August after a 1.2% gain in the prior month. These gains follow four months of declines.
The inventory-to-sales ratio fell to 1.36 months from 1.39 months. This is the lowest level since last October. Low levels mean it has been easier for companies to sell their products.
Inventories play a key role in calculating U.S. gross domestic product. A buildup of unwanted inventories has often been an early sign of recession.
Stocks
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were higher on Tuesday, while yields on the 10-year Treasury note
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fell sharply to 4.67%.
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