MNI DATA ANALYSIS: US Wholesale Inventories Up 1.0% In Feb>

--Feb Wholesale Sales +1.0%; Inv/Sales Ratio 1.26 Vs 1.26 In Jan

--February Business Inv Tracking +0.6%, Business Sales +0.4%

By Sara Haire

     WASHINGTON (MNI) - Wholesale inventories rose 1.0% in February, 

revised down slightly from the 1.1% increase in the advance estimate, 

while wholesale sales rose 1.0% in the month, data released Tuesday by 

the U.S. Commerce Department showed. 

     With wholesale inventories rising 1.0%, and factory inventories 

reporting a 0.3% gain last Wednesday, and barring no revision to the 

0.4% retail inventories, an MNI calculation is expecting a 0.6% gain for 

business inventories, to be released April 16.  

     With the addition of the 1.0% increase in wholesale sales to the 

0.1% decrease for retail trade sales from last month's advanced sales 

release and the 0.2% increase for factory shipments reported on April 4, 

an MNI calculation indicates there will be a 0.4% increase for business 

sales, barring a large revision to retail trade sales.  

--YEAR/YEAR SALES UP

     Since both February wholesale inventories and sales saw equal 

increases, the inventory/sales ratio remained at 1.26. Inventories 

year-over-year is up 5.5%, but sales increased more in the past year, 

seeing a rise of 6.8% from February 2017. The ratio is below the 1.28 

mark in February 2017, pointing to a faster sales pace than inventories 

in the past year. 

     Excluding the 0.1% decline in the auto category, wholesale 

inventories would have been up 1.1% again in February following a 1.1% 

increase in January, an MNI calculation showed. 

     Wholesale sales excluding the 1.4% rise in autos would have 

remained at 1.0% in February, following a 1.6% decline in January, with 

the year-over-year rate still showing strength with a 6.4% increase. 

--DURABLES AND NONDURABLES INVENTORIES RISE

     The value of durable inventories rose by 1.1% in the month, with 

auto inventories falling by 0.1%. Excluding the auto decline, all other 

durable components saw increases, with machinery (+1.5%) and computer 

equipment (+2.8%) seeing the largest gains. 

     Nondurables inventories were up 0.8% in February. Petroleum saw the 

largest decline with a 3.7% drop, while the only other category to 

register a decline was alcohol (-0.8%). These declines were not enough 

to offset the gains in all other categories, with the biggest increases 

seen in farm products (+5.7%), groceries (+1.0%), and the miscellaneous 

nondurable category (+1.7%). 

     Durables goods sales were up 1.7% in the month, with auto sales up 

1.4%. The remaining categories were up with the exception of 

professional equipment seeing a 0.4% decline. Metals (+4.4%), machinery 

(+3.9%), and furniture (+4.5%) all saw considerable increases. 

     February nondurable goods sales were up 0.4% following January's 

1.7% decline. Most components were up, with drugs and petroluem posting 

the only declines in the month.  

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

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