Durable Goods Sales Dip 0.4% on Slow Metal Sales

Before you go, we thought you'd like these...
Before you go close icon

Wholesale sales and inventories were up for November, according to a Commerce Department report (link opens a PDF) released today. 

After increasing a revised 1.1% for October, wholesale sales added on a seasonally adjusted 1% to hit $440 billion for November. 

While wholesale trade is used as an indicator of economic strength, investors pay close attention to durable goods as a potential sign of more sustainable confidence (or lack of confidence). For November, durable goods sales tapered off 0.4% month over month, with metals taking the largest toll at -2.6%. Still, November's durable goods sales remain 4% higher than November 2012. 

Nondurable goods sales continued to rise, up 2.1% due primarily to a 7.7% increase in farm product sales. 

Investors also keep a close eye on inventories. If factories are expanding their supplies, it could be a sign wholesalers expect demand to pick up in the near future. For November, overall inventories increased 0.5%, exactly matching analyst expectations. 

To understand the rate at which goods are being made and sold, economists compute an inventories/sales ratio. Since sales increased slightly more than inventories from October to November, the inventories/sales ratio fell 0.01 points to 1.17. 

Source: Census.gov 


The article Durable Goods Sales Dip 0.4% on Slow Metal Sales originally appeared on Fool.com.

You can follow Justin Loiseau on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading