MW: Wholesale inventories drop 1.5% as sales rise 0.6%
For the first time in eight months, inventories at U.S. wholesalers declined in relation to sales, a sign that massive inventory liquidation may be having some impact. Inventories at U.S. wholesalers fell 1.5% in February while sales increased 0.6%, the Commerce Department reported Wednesday. The inventory-to-sales ratio -- a key gauge of how lean inventories are -- fell to 1.31 from 1.34, the first decline since June. A year ago, the inventory-to-sales ratio was 1.14. Businesses have cut back on production and new orders as they try to bring their supplies of goods back into balance with demand.
