The Manufacturing & Trade Inventories Sales report is out for November 2009. This report includes retailers, wholesalers and manufacturers.
Sales were up 2.0% from October 2009 and Inventories were up 0.4% from October 2009.
For the year to year comparison, sales are still down 0.4% from November 2008 and inventories were down 11.1% from November 2008. Remember in November 2008 the official recession has gone on for 11 months.
Sales to inventory ratios is now 1.28 for the month. This is actually good, yet don't get your panties all in a bunch until you read the below on wholesale data, released earlier in the week.
The more the inventory/sales ratio returns to pre-recession levels the more it is implied hiring will begin to manufacture new goods. Of course that also requires demand return to pre-recession levels.
Merchant Wholesales were the most of both sales and inventory increases, 3.3% for sales and 1.4% for inventories.
So, here is the wholesale sales and inventories November report.
Now for wholesale, sales were up 3.3% from October 2009 and Durable goods has a sign of life, with a 1.9% increase from last month.
Back to the overall report and how inventory increases were mainly wholesale. From the wholesale report we see inventories rose 1.5%. That's the largest percentage jump in 5 years. Of those increases, in durable goods, we see software up 2.2%. In non-durable goods (up 4.2%), we see petroleum up 7.0% and then this one, farm products raw materials up 29.8%.
Farm product sales was also up 29.6% from last month. Note, these reports do not adjust for prices. So, what jumped in cost last month? Oil and farm products.
That's not too good for consumers either, for it implies increased food costs and gas costs later. So, here's this report but is it implying increased economic activity or inflation? Since both farm products and oil (the main two elements of these inventory and sales increases), have had massive price increases, it appears to be the latter.
For reference, here is October 2009 report.