Inventory-to-shipment ratio increases as shipments falter

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OTTAWA, Ont. — The inventory-to-shipment ratio increased to 1.30 from 1.27 in December. The ratio had reached a peak of 1.33 in October, rising for three consecutive months before slipping in November.

Compared to a year ago, manufacturers shipped $1.2 billion less in January 2007 while holding nearly $1 billion more inventory. Finished product inventories stand $317 million higher in January 2007 compared to a year ago.
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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