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Continued stability for the inventory-to-shipments ratio

The inventory-to-shipments ratio edged up to 1.42 in October, up from 1.41 in September.

The ratio is a key measure of the time required to exhaust inventories if inventories were to remain at their current level.

A solid increase in inventories relative to a modest rise in shipments contributed to the higher ratio. The ratio has been relatively steady since April, and remained well below the nine-year high of 1.56 established in October 2001, according to Statistics Canada.

The trend for the inventory-to-shipments ratio has been unchanged since August. Previously, the trend had been gradually shifting down since the fall of 2001.

The finished-product inventory-to-shipments ratio shifted up slightly to 0.44 in October. The ratio measures the time that would be required in order to exhaust finished-product inventories if shipments were to remain at their current level.

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