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Inventory-to-sales ratio declines

Washington -- U.S. wholesale inventories rose 0.1 percent in June from May while sales fell 0.7 percent, the U.S. Department of Commerce said Tuesday.

For the month, sales of durable goods were down 0.2 percent, while non-durable goods sales on the wholesale level were down 1.1 percent, largely due to a decline in petroleum sales, which fell 5.5 percent.

Inventory for durable goods rose 0.3 percent, while non-durable goods inventories dropped 0.2 percent at the end of the month.

The inventory-to-sales ratio for June was 1.15, indicating it would take 1.15 months to sell off the inventory in warehouses at the current pace of business activity.

A month ago the inventory-to-sales ratio was 1.34. A year ago, the ratio was 1.3, the department said.

Copyright 2010 United Press International, Inc. (UPI).

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