MNI DATA ANALYSIS: US Wholesale Inventories Rise 0.4% In Sep>

--Sep Wholesale Sales Rise 0.2%; Inv/Sales Ratio Unch From 1.26 In Aug 

--Sep Business Inv Tracking Up 0.3%, Business Sales Up 0.5%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - September wholesale inventories increased by 

0.4%, revised upward from the 0.3% increase reported in the advance 

estimate, while wholesale sales were up 0.2% in the month, data released 

by the U.S. Commerce Department on Friday showed. 

     Given that wholesale inventories rose 0.4% and factory inventories 

were already reported up 0.5%, and barring no revision to the 0.1% 

increase in retail inventories, an MNI calculation is expecting an 

increase of 0.3% for business inventories, which will be released on 

November 15.  

     With the addition of the 0.2% increase in wholesale sales to the 

0.4% increase for retail trade sales from last month's advanced sales 

release and the 0.9% increase for factory shipments already reported, an 

MNI calculation predicts that business sales will see a 0.5% increase, 

barring no large revision to retail trade sales data. 

--Y/Y SALES INCREASE

     Given the increases in both inventories and sales, the inventory to 

sales ratio was unchanged in the month. Wholesale inventories and sales 

both rose year over year, but sales rose more than inventories. 

Inventories were up 5.2% year/year, while sales were also up 7.8% from 

September 2018. The ratio is down from the 1.29 ratio seen one year ago 

due to sales growth outpacing inventories over the past year. 

     When excluding the 1.4% gain in auto inventories, inventories would 

have been up 0.2%, according to an MNI calculation. Excluding a 0.6% 

decrease in auto sales, sales would have been up 0.2%, also according to 

an MNI calculation. 

     The value of durable inventories rose by 0.8% in the month, led by 

gains in autos, computer equipment, and smaller gains in all other 

categories. Nondurables inventories fell 0.4% in September on declines 

in farm products, drugs, and the miscellaneous nondurables category. 

     Durables goods sales were flat in the month, on gains in hardware, 

machinery, and the miscellaneous durables categories and declines in all 

other categories. Nondurable goods sales rose by 0.3% in September on 

generally higher categories. 

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

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