: U.S. business inventories fall 0.1% in March


Businesses inventories, or products waiting to be sold, declined by 0.1% in March, the government said Tuesday. Economists polled by The Wall Street Journal had forecast no change. Shrinking inventories are a negative sign and depress gross domestic product. But inventory growth is still up 6.5% over the past year. The government said sales fell 1.1% in the month. The ratio of inventories to sales moved up a tick to 1.39. That’s how many months it would take to sell all the inventory on hand. While the ratio is still fairly low, it’s been on a recent uptrend. That can happen when demand slows, potentially leaving companies stuck with unwanted goods that they have to discount to sell.

This article was originally published by Marketwatch.com. Read the original article here.

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