MNI DATA ANALYSIS: US June Wholesale Inventories +0.7%>

--June Wholesale Sales +0.7%, Inventory/Sales Ratio 1.29 Vs 1.29

--June Business Inventories Tracking +0.5%, Business Sales +0.2%

By Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The value of wholesale inventories rose 0.7% in 

June, a small upward adjustment from the 0.6% gain estimated in the 

advance estimate, while wholesale sales rose 0.7%, their largest 

increase since February, data released Wednesday by the U.S. Commerce 

Department showed. 

     Looking ahead to Tuesday's report, the tracking looks positive for 

business inventories and for sales. While factory inventories were up 

0.2% in June according to data released on August 3, an MNI calculation 

shows that the addition of the gain for wholesale inventories reported 

Wednesday and the 0.6% rise in retail inventories in the advance 

estimate will result in a 0.5% rise in business inventories if there is 

no revision to the retail data.  

     The 0.7% increase for wholesale sales reported Wednesday comes on 

top of a 0.2% decrease for factory shipments reported last week and a 

0.1% decline for retail trade sales from last month's sales release, 

adding up to a 0.2% decrease for business sales barring a large revision 

to retail trade sales.  

     With the rise in June wholesale inventories and the increase in 

wholesale sales, the inventory/sales ratio was unchanged at 1.29. The 

ratio was below the 1.32 mark in June 2016, as sales have increased 

faster than inventories over the last year. 

     Excluding the auto category, wholesale inventories would have been 

up 0.6% in June after a 0.6% increase in the previous month, an MNI 

calculation showed. Sales would have still been up 0.8% in June if auto 

sales were excluded. This followed a 0.1% decline in May. 

     The value of durable inventories rose 0.5% in the month, as auto 

inventories rose 1.4%. The remaining durables components were generally 

higher, but there were declines for the lumber and electrical 

categories. 

     Nondurables inventories were up 1.0% in June. Petroleum inventories 

fell 5.2%, while the other components were generally up, besides 

alcohol. There were increases for misc. nondurables (+3.3%), farm 

products (+2.5%), and drugs (+2.4%). 

     Durables goods sales were flat in the month, with auto sales 

down 0.5%. The remaining components were mixed, with sales lumber, 

metals, electrical, and miscellaneous up, balanced by declines in autos, 

furniture, equipment, hardware, and machinery. 

     Nondurable goods sales were up 1.4% in June after a 0.3% decline 

in May. Petroleum sales were up 1.9% after a sharp 6.9% decrease 

in May. The other component movements were mixed, with a majority 

of them higher, except for apparel and chemicals. 

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

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