INDUSTRY PULSE: Inventory-to-shipment ratio at highest level since the summer of 2003

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OTTAWA, Ont. — July’s sizable drop in shipments was more than enough to send the inventory-to-shipment ratio to the recent high of 1.31 from 1.28 in June.

The ratio is now at the highest level since the August 14, 2003, when the electrical blackout in Ontario temporarily impeded factory production during the month, boosting the August 2003 ratio to 1.38.

The inventory-to-shipment ratio, which has been on a gradual rise over the last year, now stands well above the recent low of 1.20 set last summer.

The inventory-to-shipment ratio is a key measure of the time, in months, that would be required in order to exhaust inventories if shipments were to remain at their current level.

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