Wholesale inventories fell for the sixth consecutive month in February with a 1.5% decline. Economists polled had expected a smaller downward move of 0.7% following a revised drop of 0.9% in the previous month. The decline marks the largest contraction since 1992 and continues the trend of cutting back on stockpiles as weakness in the economy continues. Sales proved significant in the release, showing a rise of 0.6% for the first increase since June. Dwelling deeper in the release, durable goods rose 2.0% as sales in the automotive sector led with 3.7% gain; the first rise since September. US automakers have been in a dificult sales pitfall as the economy contracted and improvements such as these may help avert bancruptcy for one or more of Detroit's "big three." While wholesale remains the smallest portion of inventories, nonetheless, the continuing declines and the rise in sales may be viewable as an early sign the economy is bottoming.
