OTTAWA, Ont. — A sizable boost in shipments coupled with a continuing decline in inventory levels contributed to an improved inventory-to-shipment ratio.
The ratio fell back to 1.46 in July from June’s 1.49, the lowest level in four months.
The ratio is a measure of the time that would be required in order to exhaust finished-product inventories if shipments were to remain at their current level.
Looking specifically at finished-product inventories, the ratio edged back to 0.46 in July, following three months at 0.47. This is the first drop in the ratio since the start of the year. The finished-product inventory-to-shipment ratio has been on an upward trend since mid-2002.
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