MNI DATA ANALYSIS: US Wholesale Inventories Rise 1.1% In Dec>

--Dec Wholesale Sales Down 1.0%; Inv/Sales Ratio Rises To 1.33 

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - December wholesale inventories increased by 

1.1%, vs. +0.1% expected by an MNI survey of analysts and the +0.4% 

Bloomberg consensus, while wholesale sales were down 1.0% in the month, 

data released by the U.S. Commerce Department on Monday showed. 

     Retail trade sales, that is those excluding food services sales, 

were already reported down 1.3% in December's retail sales release. 

     Advance retail inventories and factory inventories and shipments 

will all be released on Wednesday, allowing MNI to make a preliminary 

calculation of business inventories and sales at that point. The order 

of releases is a bit unusual this month as the Commerce Department is 

still catching up from the shutdown. 

--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 slower than inventories. 

Inventories were up 7.3% year/year, and sales were up 1.0% from 

December 2017. The ratio is up from the 1.25 ratio seen one year 

ago. 

     When excluding the 0.9% gain in auto inventories, inventories would 

have been up 1.1%, according to an MNI calculation. Excluding a 2.2% 

decrease in auto sales, sales would have been down 0.8%, also according 

to an MNI calculation. 

     The value of durable inventories rose by 1.5% in the month, led by 

increases in metals, furniture, and electrical. Nondurables inventories 

rose 0.3% in December on gains in apparel and chemicals, but were 

partially offset by a 4.8% drop in petroleum. 

     Durables goods sales were up 0.7% in the month, on gains in 

furniture and electrical. This was partially offset by decreases in 

autos, hardware, and lumber. Nondurable goods sales fell by 2.5% in 

December on declines in petroleum and chemicals. 

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

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