MNI DATA ANALYSIS: US October Business Inventories Up 0.6%>

--Retail Inventories Up 0.8%, Revised Down From Advance Estimate 

--Total Business Inventories Excluding Retail Auto Up 0.5%

--Unpublished Retail Components Up 0.5%, MNI Calculation Shows

By Kevin Kastner

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

up 0.6% from September, as expected by analysts and an MNI projection, 

data released by the Commerce Department Friday morning showed. 

     Retail inventories rose 0.8%, revised down from the 0.9% gain in 

the advance estimate. Data from the wholesale inventories report showed 

a 0.8% rise in the month, which was revised up from the 0.7% gain in the 

advance report, while factory inventories were up 0.1%. 

     According to an MNI calculation, if a 1.1% increase in motor 

vehicle inventories had been excluded, total business inventories would 

have been up 0.5% in October. The increase in motor vehicles inventories 

was revised down from a 1.2% gain in the advance estimate. 

     After excluding the sharp increase in motor vehicle inventories, 

the remaining retail categories were still up 0.7%, unrevised from the 

advance estimate. All of the other retail inventory components increased 

in October. 

     At the same time, the relatively large unpublished retail category 

was up 0.5% following a 0.1% decrease in September, according to an MNI 

calculation. 

--BUSINESS SALES UP MODESTLY

     October business sales posted a 0.3% increase in the month, above 

the 0.2% gain forecast by MNI after the wholesale data were released, 

but before the upward revision to October retail trade sales released 

earlier Friday morning. 

     Retail sales excluding food services were up 1.2% in October, 

revised up from the 0.9% gain reported last month. There was a 

previously announced 0.1% decline for factory shipments, which are equal 

to sales in this report, and wholesale sales posted a 0.2% decline. 

     The inventory-to-sales ratio rose to 1.35 in October from 1.34 in 

September due to the larger gain in inventories compared to sales in 

October. The ratio remained slightly below the 1.36 level seen in 

October 2017, as sales growth has outpaced inventory growth over the 

last year. 

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

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