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INDUSTRY PULSE: Inventory-to-shipment ratio rises again (April 14, 2006)

OTTAWA, Ont. -- The sharp drop in shipments in February boosted the inventory-to-shipment ratio to 1.31 from 1.27 i...


OTTAWA, Ont. — The sharp drop in shipments in February boosted the inventory-to-shipment ratio to 1.31 from 1.27 in January, according to Statistics Canada.

In recent months, the volatility of shipments has caused the ratio to vary more than usual. February’s ratio is equal to that of the recent high set in July 2005.

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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