MNI DATA ANALYSIS: US Dec Business Inventories Rise 0.4%>

--Retail Inventories +0.2%, Same as Advance Estimate 

--Total Business Inventories Excluding Retail Auto Up 0.5%

--Unpublished Retail Components Rose 0.4% In Dec, MNI Calculation Shows

By Holly Stokes and Sara Haire

     WASHINGTON (MNI) - The value of business inventories rose 0.4% in 

December, slightly above analysts' expectations for a 0.3% rise, but 

right on target with what the calculation by MNI predicted after the 

wholesale inventories report on Friday, data released Wednesday morning 

by the Commerce Department showed. 

     Retail inventories rose 0.2%, unrevised from the advance estimate 

published on January 26. Already released data showed that wholesale 

inventories rose 0.4% in the month, while factory inventories were up 

0.5%. 

     According to an MNI calculation, overall business inventories would 

have been up 0.5% in December if an unrevised 0.4% decline in retail 

motor vehicle inventories was excluded. 

     After excluding the 0.4% decrease for motor vehicle inventories, 

the remaining retail categories combined for a 0.5% gain, slightly lower 

than the 0.6% gain reported in the advance estimate. There were gains in 

all business categories, with an especially large 1.7% rise in 

furniture, home furnishings, electrical, and applicance store. Under 

general merchandise stores there was a small decline in department 

stores. 

     The unpublished retail categories were up 0.4%, according to an MNI 

calculation. This followed a 0.5% increase in the previous month. 

     Business sales also saw a rise of 0.6% in December, following a 

1.4% rise in November. Business sales are up 6.7% year-over-year.  

     Retail sales excluding food services were down 0.1% in the month, 

while wholesale sales rose 1.2% and manufacturing shipments, which are 

equal to sales in this report, were up 0.6%. 

     With both business inventories and business sales seeing moderate 

rises, the inventory-to-sales ratio remained at 1.33 in December, the 

lowest value since November 2014. The ratio is well below the 1.37 level 

in December 2016, as sales grew at a much faster rate than inventories 

over the last twelve months. 

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

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