MNI DATA ANALYSIS: US May Business Inventories Up 0.4%>

--Retail Inventories Up 0.4%, Unrev From +0.4% Adv Estimate 

--Total Business Inventories Excluding Retail Auto Up 0.3%

--Unpublished Retail Components Up 0.1%, MNI Calculation Shows

By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - The value of business inventories in May was 

up 0.4%, as expected by analysts and the MNI calculated prediction, 

data released by the Commerce Department Monday morning showed. 

     Retail inventories increased 0.4%, unrevised from the advance 

estimate of a 0.4% gain. Data from the wholesale inventory report showed 

a 0.6% rise in the month, which was up from the 0.5% rise in the advance 

report, while factory inventories were up 0.2%. 

     According to an MNI calculation, if a 0.9% increase in motor 

vehicle inventories had been excluded, total business inventories would 

have been up 0.3% in May. The increase in motor vehicles was revised 

down to 0.9% from the 1.0% gain in the advance estimate. 

     After excluding the increase in motor vehicle inventories, the 

remaining retail categories were up 0.1%, unrevised from the 

advance estimate for a 0.1% gain. There were increases in every 

published category except furniture and apparel. 

     According to an MNI calculation, the unpublished retail categories 

rose 0.1% following a 0.4% increase in April. 

     May business sales posted a 1.4% increase in the month, higher 

than the 1.3% rise forecast by MNI after the wholesale data released. 

but before the upward revision to May retail trade sales released 

earlier Monday morning. 

     Retail sales excluding food services rose 1.1% in May, revised up 

from the 0.8% gain reported last month. Factory shipments, which are 

equal to sales in this report, were up 0.6%, while wholesale sales 

surged by 2.5%. 

     The inventory-to-sales ratio fell to 1.34 in May from 1.35 due to 

the larger gain in sales than in inventories this month. The ratio 

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

outpaced inventory growth over the last year. 

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

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