MNI DATA IMPACT: US June Wholesale Inventories Hold Steady>

--June Wholesale Sales Fall 0.3%; Inv/Sales Ratio Unchanged At 1.36

--Business Inventories Tracking Flat, Sales +0.2% 

By Kevin Kastner

     WASHINGTON (MNI) - June wholesale inventories were flat, a downward 

revision from the 0.2% gain in the advance indictors report, while 

wholesale sales were down 0.3% in the month, data released by the U.S. 

Commerce Department Friday showed. 

     Factory inventories were already reported up 0.2% and the advance 

estimate of retail inventories was a 0.1% decrease. Including today's 

data, business inventories are tracking to show no change based on an 

MNI calculation. 

     Retail trade sales, those excluding food services sales, were 

already reported up 0.4% in the June retail sales release, the same 

increase as factory shipments for the month, so MNI sees business sales 

tracking for a 0.2% increase when the wholesale sales decline is 

included. 

     Here are the other findings from the release: 

     - When excluding a 0.2% decline in the auto category, wholesale 

inventories would have been up 0.1%, according to an MNI calculation. 

Excluding a 0.2% decrease in auto sales, wholesale sales would have 

still been down 0.3%. 

     - The value of durable inventories rose by 0.3% this month, with 

gains in machinery and professional equipment offsetting the auto 

decline. Nondurables inventories decreased by 0.4% in June, with 

declines in a number of categories. Petroleum inventories, however, 

rebounded by 2.2%. 

     - Durables goods sales were up 0.2% in the month despite the 0.2% 

decline in automotive sales. Nondurable goods sales decreased by 0.7% in 

June on a 2.3% drop in petroleum sales. 

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

sales ratio held steady at 1.36. Seasonally adjusted inventories were up 

7.6% year/year, well ahead of the 0.2% year/year decrease in sales, so 

the current month's ratio is well ahead of the 1.26 reading in June 

2018. 

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

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