Business Sales and Inventories Soar for April

Business sales and inventories are expanding at strong rates, according to an April Commerce Department report (link opens as PDF) released today. Investors watch this report to understand economic demand (sales), as well as business' expectations for future demand (inventories).

Seasonally adjusted sales jumped 0.7% month-to-month to $1,337 billion for April. Merchant wholesalers recorded a strong 1.3% month-to-month boost, while retailer sales increased 0.6%. In the last year, a 7.8% rise in merchant wholesaler sales provided the primary push for a 5.4% advance in total business sales. Manufacturing has managed a 3.9% sales increase in the last 12 months. 

As sales expanded, inventories also increased a seasonally adjusted 0.6% to $1,728 billion for April. Analysts were pleasantly surprised, having expected a smaller 0.4% rise.  As with sales, merchant wholesalers took the lead on relative increases, expanding inventories 1.1% from March to April. In the last year, overall inventories are up 5%.

To understand the rate at which goods are being made and sold, economists compute an inventories/sales ratio. Since sales and inventories increased relatively similar amounts from March to April, the inventories/sales ratio remained at 1.29. In April 2013, the ratio was 1.30. 

Source: Census.gov 

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2992088, ~/Articles/ArticleHandler.aspx, 12/18/2014 4:57:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement