MNI DATA IMPACT: US June Business Inventories Flat>

--Retail Inventories Revised Down To -0.3% from -0.1% Advance Reading

--Total Business Inventories Excluding Retail Auto Up 0.1%

--Unpublished Retail Components Down 0.2%, MNI Calculation Shows

By Kevin Kastner, Brooke Migdon and Alexandra Kelley

     WASHINGTON (MNI) - The value of June business inventories came in 

flat, below the forecasted 0.2% gain expected by a MNI survey of 

analysts and the 0.1% increase projected by the Bloomberg consensus, 

data released by the Commerce Department Thursday morning showed. 

     - Retail inventories for June posted a 0.3% decline, a 

larger-than-expected downward revision from the 0.1% decrease recorded 

in the advance reading. The key reason was a downward revision to the 

retail auto component. 

     - According to an MNI calculation, if a 0.5% decline in retail 

motor vehicle inventories had been excluded, total business inventories 

would have been up 0.1% in June.                                                             

     - At the same time, the relatively large unpublished retail 

category declined 0.2% following a 0.6% increase in May, according to an 

MNI calculation. 

     - June business sales posted a 0.1% increase in the month, namely 

due to a 0.3% increase in retail sales excluding food services and a 

previously announced 0.4% increase for a factory shipments, which are 

equal to sales in this report. Meanwhile, June wholesale sales posted a 

0.3% decline, bringing down the headline sales number. 

     - The inventory-to-sales ratio slowed marginally 1.39 in June from 

1.40 in May, due to the flat reading in inventories and gain in sales. 

The ratio was greater than the 1.34 level seen in June 2018, as 

inventory growth has outpaced sales growth over the last year.  

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

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