Wholesale inventories back in line with sales

Inventories/Sales Ratio: The August inventories/sales (I/S) ratio for merchant wholesalers, except manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.31. The August 2019 ratio was 1.35.

In April and May, the wholesale I/S ratios were 1.63 and 1.53, respectively. These values were substantially higher than any others posted in the past 10 years, and thus this indicator has returned to a more normal reading. Unfortunately, the sales base of the ratio, at $486.6 billion, is still 3-1/2 percent below its pre-pandemic level.