MNI DATA ANALYSIS: US Wholesale Inventories Up 0.1% In April>

--April Wholesale Sales +0.8%; Inv/Sales Ratio 1.28 Vs 1.29 In Mar

--April Business Inv Tracking +0.3%, Business Sales +0.4%

By Holly Stokes

     WASHINGTON (MNI) - April wholesale inventories rose by 0.1%, 

revised up slightly from the flat reading reported in the advance 

estimate, while wholesale sales jumped up 0.8% in the month, data 

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

     Given that wholesale inventories increased 0.1%, and factory 

inventories reported a 0.3% gain on Monday, and barring no revision to 

the 0.6% rise in retail inventories, an MNI calculation is expecting an 

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

14.  

     With the addition of the 0.8% gain 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 indicates that business sales will see a 0.4% rise, barring 

no large revision to retail trade sales data. 

--Y/Y SALES UP

     Since wholesale inventories rose at a slower pace than sales rose, 

the inventory/sales ratio dipped to 1.28. Inventories year-over-year is 

up 5.8%, as sales have risen 7.8% from April 2017. The ratio is down 

from the 1.30 ratio seen one year ago, pointing to sales outpacing 

inventories in the past year. 

     When excluding the 0.4% gain in auto inventories, inventories would 

have still been up 0.1%, according to an MNI calc. Excluding a 0.7% drop 

in auto sales, sales would have been up 0.9%, also according to an MNI 

calc. 

     The value of durable inventories rose by 0.2% in the month, led by 

gains in all categories except furniture and misc. Nondurables 

inventories came in flat in April, as categories were mixed with the 

biggest gains seen in farm products and petroleum. 

     Durables goods sales were up 0.8% in the month, with categories 

generally up, apart from declines in autos, electrical, and hardware. 

Nondurable goods sales rose by 0.7% in April, gains in many categories 

were partially offset by declines in apparel, groceries, alcohol, and 

misc. 

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

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