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

--June Wholesale Sales -0.1%; Inv/Sales Ratio Unch From 1.25 In May

--June Business Inv Tracking +0.1%, Business Sales +0.4%

By Kevin Kastner, Harrison Clarke, and Shikha Dave

     WASHINGTON (MNI) - June wholesale inventories increased by 0.1%, 

revised upward from the flat reading reported in the advance estimate, 

while wholesale sales decreased 0.1% in the month, data released by the 

U.S. Commerce Department on Thursday showed. 

     Given that wholesale inventories rose 0.1% and factory inventories 

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

reading in retail inventories, an MNI calculation is expecting an 

increase of 0.1% for business inventories, which will be released on 

August 15.  

     With the addition of the -0.1% fall in wholesale sales to the 0.3% 

increase for retail trade sales from last month's advanced sales release 

and the 1.0% gain for factory shipments already reported, an MNI 

calculation predicts that business sales will see a 0.4% rise, barring 

no large revision to retail trade sales data. 

--Y/Y SALES RISE

     Although wholesale inventories rose while sales declined, the 

inventory/sales ratio remained unchanged. Inventories were up 5.1% 

year/year, while sales have risen 10.2% from June 2017. The ratio is 

down from the 1.31 ratio seen one year ago due to sales growth outpacing 

inventories over the past year. 

     When excluding the 1.2% decline in auto inventories, inventories 

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

0.4% increase in auto sales, sales would have been down 0.1%, also 

according to an MNI calculation. 

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

gains in metals, lumber and equipment. Nondurables inventories fell 1.0% 

in June on all categories except chemicals, groceries and paper. 

     Durables goods sales were up 0.2% in the month, despite generally 

lower categories. Nondurable goods sales fell by 0.3% in June on a 6.6% 

decline in miscellaneous nondurables. 

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

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