INDUSTRY PULSE: Inventory-to-shipment ratio falls
OTTAWA, Ont. — The inventory-to-shipment ratio decreased from its recent high of 1.31 to 1.28 in June, due to the increase in the value of shipments and the decline in inventories, according to Statistics Canada records.
However, the overall trend for the ratio, which had remained relatively stable last year, has been on the rise in 2006 as shipment activity strains under several factors including the strong Canadian dollar and soaring input costs.
The inventory-to-shipment ratio is a key measure of the time, in months, that would be required to exhaust inventories if shipments were to remain at their current level.
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