MNI DATA ANALYSIS: US Wholesale Inventories Rise 0.8% In Oct>

--Oct Wholesale Sales Down 0.2%; Inv/Sales Ratio Up From 1.27 In Sep 

--Oct Business Inv Tracking Up 0.6%, Business Sales Up 0.2%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - October wholesale inventories increased by 0.8%, 

revised upward from the 0.7% increase reported in the advance estimate, 

while wholesale sales were down 0.2% in the month, data released by the 

U.S. Commerce Department on Friday showed. 

     Given that wholesale inventories rose 0.8% and factory inventories 

were already reported up 0.1%, and barring no revision to the 0.9% 

increase in retail inventories, an MNI calculation is expecting an 

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

December 14.  

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

0.9% increase for retail trade sales from last month's advanced sales 

release and the 0.1% decrease for factory shipments already reported, an 

MNI calculation predicts that business sales will see a 0.2% increase, 

barring no large revision to retail trade sales data. 

--Y/Y SALES INCREASE

     Given the decrease in sales and increase in inventories, the 

inventory to sales ratio rose in the month. Wholesale inventories and 

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

Inventories were up 6.9% year/year, and sales were up 6.8% from October 

2017. The ratio is unchanged from the 1.28 ratio seen one year ago. 

     When excluding the 3.4% rise in auto inventories, inventories would 

have been up 0.5%, according to an MNI calculation. Excluding a 1.3% 

decrease in auto sales, sales would have been down 0.1%, also according 

to an MNI calculation. 

     The value of durable inventories rose by 1.7% in the month, led by 

increases in autos, computer equipment, and machinery. Nondurables 

inventories fell 0.6% in October on declines in petroleum farm products, 

but were partially offset by a rise in apparel. 

     Durables goods sales were down in the month, on declines in autos, 

furniture, and hardware. This was partially offset by a rise in computer 

equipment. Nondurable goods sales fell by 0.3% in October on declines in 

farm products and apparel. 

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

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