Wholesale inventories remain flabby

U.S. wholesalers' inventories increased at a slower-than-expected rate in August, as demand for goods increased. Inventories of unsold goods rose by 0.1% in August, according to Department of Commerce report. Analysts surveyed by Reuters had forecast a 0.3% increase in inventories after a 0.2% increase in July. August sales of lumber and furniture fell 1.4% and 2.7%, respectively in August. Sales at wholesalers increased 0.4% in August following an upwardly revised 0.2% increase in July and are up 4.4% from a year ago. Inventories increased 0.1% from July and are up 4.4% from the same time last year. The inventory-to-sales ratio, a measure of how long it would take to sell off stocks and goods at the current pace, remained at a record low 1.11 months for the fourth consecutive month. In a report released yesterday, sales at stores that have been in business at least 12 months increased two percent from a year earlier, according to the International Council of Shopping Centers Inc. and UBS Securities LLC, both are based in New York, according to published reports. The increase was the smallest since same-store sales fell 1.9% in April. The September results were on the low end of ICSC's sales growth forecast of 2% to 2.5%.