Highlights
Wholesale inventories jumped 0.7 percent in January, out of proportion with a 0.9 percent decline in wholesale sales that raised the inventory-to-sales ratio two notches to 1.19. But the gain in inventories could be a response to strong wholesale sales in the prior month which increased 1.6 percent.

January's inventory jump was centered in autos, perhaps an imbalance given signs of little better than moderate consumer demand. Inventories of machinery also rose sharply but demand remains strong for capital goods, highlighted this morning by the trade report which showed strong industrial exports. Wholesale sales of machinery in the month in fact nearly matched the gain in inventories.

Month-to-month spikes in wholesale data aren't a cause for alarm but further inventory gains, given the prospect of slowing growth, could feed worries of inventory overhang. Note that the inventory-to-sales is up 3 tenths from this time last year, further evidence of unwanted backup at the wholesale level, an important level at the very base of the supply chain.

Inventories at manufacturers, released first with the durable goods report than revised with Tuesday's factory orders report, fell 0.2 percent in January. Retail inventories, the final piece, will be released with Tuesday's business inventory report.

2007 Release Schedule

Released On: 1/10 2/8 3/9 4/6 5/8 6/7 7/10 8/8 9/7 10/10 11/7 12/11 Released For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct