Wholesale Sales Rise, Inventories Drop

Sales at U.S. wholesalers rose in February to the highest level in half a year, setting the stage for a rebound in manufacturing and a sustained economic recovery.

Sales increased 0.8% to $227billion, the Commerce Department said. Wholesale inventories fell 0.7%, a ninth straight decline that left stockpiles at a two-year low. The drop left the inventory-to-sales ratio, a gauge of how long goods sit in warehouses, at 1.26 months’ worth, the lowest since May 1997.