Wholesale sales rise in November

Wholesalers posted a 2.2% increase in sales in November, marking the largest gain in over two years, according to a report by the Department of Commerce. The higher sales figure was spurred by an 8.9% increase in petroleum sales, which was the largest spike since the hurricane season of 2005. The Department of Commerce also revised the increase in October sales up to 1.4% from the previously estimated 0.7% increase. Wholesale inventories rose 0.6% in November, after they were unchanged in October. Inventories for automobiles and petroleum rose 2.3% and 2.6%, respectively in November. The November inventory/sales ratio for wholesalers, which measures the number months it would take to use existing stocks at the current sales pace, fell to 1.07 in November, down from a reading of 1.08 in October, in a sign that businesses are not building their inventories as the economy slows.