MNI DATA IMPACT: US April Wholesale Inventories Up 0.8%>

--March Wholesale Sales Fall 0.4%; Inv/Sales Ratio Rises To 1.34

--Business Inventories Tracking +0.5%, Sales -0.4% 

By Kevin Kastner and Harrison Clarke

     WASHINGTON (MNI) - April wholesale inventories rose by 0.8%, just 

above the 0.7% gain expected by the both the Bloomberg and MNI surveys, 

while wholesale sales were down 0.4% in the month, data released by the 

U.S. Commerce Department Friday showed. 

     Wholesale inventories had initially been reported as up 0.7% in the 

advance indictors report published last week and incorporated into the 

previous estimate of first quarter GDP. 

     Factory inventories were already reported up 0.3% and the advance 

estimate of retail inventories was a 0.5% gain. Including today's data, 

business inventories are tracking at a 0.5% increase based on an MNI 

calculation. 

     Retail trade sales, those excluding food services sales, were 

already reported down 0.2% in the April retail sales release, while 

factory shipments fell 0.5%, so MNI sees business sales tracking at a 

0.4% decline. 

Here are the other findings from the release:

     - When excluding the 3.8% gain in the auto category, inventories 

would have been up only 0.5%, according to an MNI calculation. Excluding 

a 0.5% increase in auto sales, business sales would have been down 0.5%. 

     - The value of durable inventories rose by 1.0% in the month, led 

by the sharp gain in autos and smaller increases in lumber, machinery, 

and metals. Nondurables inventories rose 0.5% in April, led by a 1.6% 

gain in petroleum and a 1.5% rise in drug inventories. 

     - Durables goods sales were down 1.1% in the month on widespread 

declines. Nondurable goods sales rose by 0.2% in April with a 2.5% gain 

in apparel the key factor that was partially offset by a 2.4% decline in 

chemicals. 

     - Given the movements in sales and inventories, the inventory to 

sales ratio rose to 1.34 from 1.33 in the previous month. Seasonally 

adjusted inventories were up 7.6% year/year, sharply outpacing a 2.7% 

year/year rise in sales. The ratio was 1.28 in April 2018. 

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

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