[By: Greg Michalowski] – US business inventories for November showed a marginal decline of 0.1%, aligning perfectly with the forecasts. This minor dip brought the total inventory value to approximately $2548.9 billion. Interestingly, this figure mirrors the previous month’s data, where a similar 0.1% decrease was observed.

Year-on-Year Inventory and Sales Analysis

When examining the year-over-year (YoY) data, there’s a noticeable increment of 0.4% from November 2022. This subtle rise indicates a gradual yet consistent growth in inventory levels over the year.

Sales Data in November

The sales figures for November were also noteworthy. The total sales value stood at $1,858.8 billion, marking a slight increase of 0.2% from October 2023. This change comes with a margin of error of ±0.1%. Furthermore, compared to November 2022, there was a more significant increase of 1.0%, albeit with a slightly higher margin of error of ±0.3%.

Inventories/Sales Ratio and Global Considerations

The inventory-to-sales ratio in November was calculated at 1.37, slightly lower than the 1.38 ratio of November 2022. This ratio is a critical indicator of the balance between inventory levels and sales, suggesting a stable market situation for the period.

Global Impacts and Future Considerations

While the data primarily focuses on US business inventories, it’s important to consider potential global impacts. Recent issues in the Red Sea are being closely monitored for any disruptions they might cause in inventory levels. Although the direct impact is expected to be more pronounced in Europe, there is a possibility of a ripple effect extending further. It’s crucial to note that these observations are based on older data points, and ongoing developments in the region could influence future inventory trends.

Source: https://www.forexlive.com/news/us-business-inventories-for-november-01-versus-01-expected-20240117/