MNI DATA ANALYSIS: US August Business Inventories Up 0.5%>

--Retail Inventories Up 0.7%, Unrev From Advance Estimate 

--Total Business Inventories Excluding Retail Auto Up 0.3%

--Unpublished Retail Components Down 0.6%, MNI Calculation Shows

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The value of business inventories in August were 

up 0.5%, slightly below the 0.6% increase expected by analysts, data 

released by the Commerce Department Monday morning showed. 

     Retail inventories rose 0.7%, unrevised from the gain in the 

advance estimate. Data from the wholesale inventory report showed a 1.0% 

rise in the month, which was revised up from the 0.8% gain in the 

advance report, while factory inventories were down 0.1%. 

     According to an MNI calculation, if a 1.8% increase in motor 

vehicle inventories had been excluded, total business inventories would 

have been up 0.3% in August. The increase in motor vehicles 

inventories was revised down from a 2.0% gain in the advance estimate. 

     After excluding the increase in motor vehicle inventories, the 

remaining retail categories were flat, revised down from the advance 

estimate. There were increases for most categories, slightly offset by 

a 0.2% decline in department stores. 

     The relatively large unpublished retail category fell 0.6% 

following a 0.6% decrease in July, according to an MNI calculation. 

--BUSINESS SALES RISE

     August business sales posted a 0.5% increase in the month, in line 

with the 0.5% rise forecast by MNI after the wholesale data were 

released, but before the downward revision to August retail trade sales 

released earlier Monday morning. 

     Retail sales excluding food services were flat in August, revised 

down from the 0.1% gain reported last month. There was a previously 

announced 0.5% gain for factory shipments, which are equal to sales in 

this report, and wholesale sales. 

     The inventory-to-sales ratio unchanged at 1.34 in August due to 

the similar gains in sales and inventories this month. The ratio 

remains well below the 1.39 level seen in August 2017, as sales growth 

has sharply outpaced inventory growth over the last year. 

     The August growth in business inventories is a positive factor for 

the third quarter, but it remains to be seen whether inventory growth 

slows over the next month. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]