Stocks at US businesses fell for the 15th straight month in April as sales surged, the government said today in a report showing companies will likely need to beef up production to keep up with rising demand.
The US commerce department said business inventories in April were down 0.2 per cent, matching expectations, compared to a drop of 0.4 per cent the previous month. Stocks in April totalled $1.1 trillion, their lowest level since October 1999.
Boosted by strong demand for manufacturers' goods, total business sales soared, notching up a rise of 1.8 per cent, the largest increase since October last year.
The stock-to-sales ratio - the time it would take to deplete inventories at the current sales pace - fell to 1.35 months, the lowest on record.