January Was A Good Month For Business

Business sales remained strong in January 2011.  Econintersect calculates sales were up 11% YoY using unadjusted data, and up over 2% MoM (comparing December and January YoY increases).   Business data was good in January.

Sales.  The US Census Bureau announced today that the combined value of distributive trade sales and manufacturers’ shipments for January, adjusted for seasonal and trading-day differences by not for price changes, was estimated at $1,177.8 billion, up 2.0 percent from December 2010 and up 10.8 percent from January 2010.

Inventories.  Manufacturer’s and trade inventories, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $1,453.1 billion, up 0.9% from December 2010 and up 9.1 percent from January 2010.

Inventories/Sales Ratio.  The total business inventories / sales ratio on seasonally adjusted data at the end of January was 1.23.  The January 2010 ration was 1.25.

Econintersect evaluates using unadjusted data.  For this month, the analysis using the US Census seasonally adjusted data agrees with Econintersect’s analysis of the unadjusted data.

Inventories are in good shape and are showing normal seasonal variations.  Inventories are not suggesting any signs of slowdonw.

The components of business sales were reviewed earlier this week: retail sales (analysis here), wholesale (analysis here), and manufacturing (analysis here).  All components were positive in January showing signs of economic expansion.

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Wholesale Sales Continue Strong Improvement  by Steven Hansen

Manufacturing Green Shoot Turns into Tree in January 2011  by Steven Hansen