US wholesale inventories drop more than expected in November

US wholesale inventories fell more than expected in November, but sales dropped even faster, according to data released on Friday by the Commerce Department.

Inventories slipped 0.3% month-on-month in volume terms to $582.9bn, matching a downwardly-revised 0.3% drop in October, as stocks of both durable and non-durable goods declined.

Economists had been expecting a 0.1% decrease.

Stocks of metals and miscellanous durable goods registered the largest declines.

However, total sales declined even quicker, retreating by 1% month-on-month to $442.8bn, led by drops in sales of non-durables such as farm and petroleum products, and were 4.6% below year-ago levels.

Sales of durable goods were up 0.4% from last month, but down 1.8% from a year ago, while non-durable goods sales were 2.4% lower compared when with October and down 7.2% from last year.

In November, the inventory to sales ratio rose to 1.32, in comparison to 1.23 one year ago.