MNI DATA IMPACT: US January Wholesale Inventories Rise 1.2%>

--Jan Wholesale Sales Up 0.5%; Inv/Sales Ratio Rises To 1.34

--Business Sales Tracking +0.1% 

By Shikha Dave

     WASHINGTON (MNI) - January wholesale inventories increased by 1.2%, 

vs. +0.1% expected by both a Bloomberg consensus and an MNI survey of 

analysts, while wholesale sales were up 0.5% in the month, data released 

by the U.S. Commerce Department Friday showed. 

     Retail trade sales, those excluding food services sales, were 

already reported up 0.2% in January's retail sales release, while factory 

shipments fell 0.4%, so an MNI calculation sees business sales tracking 

for a 0.1% gain. 

     Factory inventories were already reported up 0.5%. Since advance 

retail inventories have not been released, MNI cannot calculate a 

preliminary estimate for business inventories. 

Here are the key findings from the release:

     -When excluding the 1.4% rise in auto inventories, inventories 

would have still been up 1.2%, according to an MNI calculation. 

Excluding a 2.5% increase in auto sales, sales would have been up 0.3%, 

also according to an MNI calculation. 

     -The value of durable inventories rose by 0.9% in the month, led by 

increases in electrical, furniture, and autos. Nondurables inventories 

rose 1.6% in January on a 10.7% rise in petroleum and a smaller gain in 

apparel (+3.2%), but were partially offset by a 1.8% decline in farm 

products. 

     -Durables goods sales were flat in the month, on declines in 

miscellaneous durables and electrical. This was partially offset by 

increases in lumber, furniture, and autos. Nondurable goods sales rose 

by 0.9% in January on gains in apparel, farm products, and petroleum. 

     -Given the increase in sales and 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 7.7% year/year, and sales were up 2.7% from January 2018. The ratio 

is up to 1.34 from the 1.28 ratio seen one year ago. 

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

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