MNI DATA ANALYSIS: US Wholesale Inventories Rise 0.6% In July>

--July Wholesale Sales Flat; Inv/Sales Ratio 1.26 From 1.25 In June

--July Business Inv Tracking +0.6%, Business Sales Up +0.1%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - July wholesale inventories increased by 0.6%, 

revised downward from the 0.7% reported in the advance estimate, 

while wholesale sales were flat in the month, data released by the 

U.S. Commerce Department on Tuesday showed. 

     Given that wholesale inventories rose 0.6% and factory inventories 

were already reported up 0.8%, and barring no revision to the 0.4% 

increase in retail inventories, an MNI calculation is expecting an 

increase of 0.6% for business inventories, which will be released on 

September 14.  

     With the addition of the flat reading in wholesale sales to the 

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

release and the flat reading for factory shipments already reported, an 

MNI calculation predicts that business sales will see a 0.1% rise, 

barring no large revision to retail trade sales data. 

--Y/Y SALES RISE

     Although wholesale inventories rose while sales came in flat, the 

inventory/sales ratio rose slightly. Inventories were up 5.0% 

year/year, while sales have rose 9.8% from July 2017. The ratio is 

down from the 1.32 ratio seen one year ago due to sales growth outpacing 

inventories over the past year. 

     When excluding the 1.1% decline in auto inventories, inventories 

would have been up 0.8%, according to an MNI calculation. Excluding a 

0.3% decrease in auto sales, sales would have been flat, also 

according to an MNI calculation. 

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

gains in computer equipment, metals, and lumber. Nondurables inventories 

rose 0.3% in July despite the 1.7% decline in petroleum and on gains in 

paper, farm products, and chemicals. 

     Durables goods sales were flat in the month, on generally 

lower categories. Nondurable goods sales fell by 0.1% in July on 

declines in most categories. 

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

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