MNI DATA ANALYSIS: US September Business Inventories Up 0.3%>

--Retail Inventories Up 0.1%, Unrevised From Advance Estimate 

--Total Business Inventories Excluding Retail Auto Up 0.3%

--Unpublished Retail Components Down 0.1%, MNI Calculation Shows

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The value of business inventories in September 

were up 0.3% as expected by analysts, data released by the Commerce 

Department Thursday morning showed. 

     Retail inventories rose 0.1%, unrevised from the gain in the 

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

rise in the month, which was revised up from the 0.3% gain in the 

advance report, while factory inventories were up 0.5%. 

     According to an MNI calculation, if a 0.4% increase in motor 

vehicle inventories had been excluded, total business inventories would 

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

inventories was revised up from a 0.3% gain in the advance estimate. 

     After excluding the increase in motor vehicle inventories, the 

remaining retail categories were down 0.1%, unrevised from the advance 

estimate. There were declines or flat readings in all categories, except 

for motor vehicles and parts. 

     The relatively large unpublished retail category was down 0.1% 

following a 0.7% decrease in August, according to an MNI calculation. 

--BUSINESS SALES UP

     September business sales posted a 0.4% increase in the month, 

slightly below the 0.5% gain forecast by MNI after the wholesale data 

were released, but before the downward revision to September retail 

trade sales released earlier Thursday morning. 

     Retail sales excluding food services were +0.2% in September, 

revised down from the 0.4% gain reported last month. There was a 

previously announced 0.9% gain for factory shipments, which are equal to 

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

     The inventory-to-sales ratio was unchanged at 1.34 in September due 

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

remains well below the 1.37 level seen in September 2017, as sales 

growth has sharply outpaced inventory growth over the last year. 

     The September 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$]