Inventories increase and manufacturers expect increasing sales

Via Census:

Inventory accumulation is steady and in pace with sales growth. Given the strength of this morning's retail sales report for October, retailers are likely to continue to add to their inventories.The economy is growing and inventories need to expand to keep up with this growth. 


The U.S. Census Bureau showed sales increased in manufactured goods 0.5% from August 2010, and up 8.9% from September 2009.  Inventories were up 0.9% from August 2010 and up 6.3% from September 2009.  The total business inventories/sales ratio based on seasonally adjusted data at the end of September was 1.27. The September 2009 ratio was 1.30.

Source Bloomberg

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