WASHINGTON -- Inventory levels among US companies fell 1.5% in August, while sales rose 1.1%, the US Commerce Department said today.

 

Inventories dropped for the 13th straight month, while sales by manufacturers, wholesalers and retailers were up for the third straight period, the Commerce Department said, crediting the government's Cash for Clunkers program for the boost.

During the month, the sales-to-inventories ratio fell three basis points to 1.33. The ratio suggests it would take 1.33 months to deplete inventories at the August sales pace, only slightly higher than August 2008 inventory to sales ratio of 1.30.

Manufacturers cut inventories 0.8%, retailers 2.3% and wholesalers 1.3%. August sales at retailers and wholesalers were up, while manufacturers' sales fell 0.3%. 

The current 13-month drop in inventories is the longest since they fell for 15 straight months during the 2001-02 recession.

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