MNI DATA IMPACT: US May Wholesale Inventories Up 0.4%>

--May Wholesale Sales Up 0.1%; Inv/Sales Ratio Increase To 1.35

--Business Inventories Tracking +0.3%, Sales +0.2% 

By Kevin Kastner, Brooke Migdon and Alexandra Kelley

     WASHINGTON (MNI) - May wholesale inventories increased by 0.4%, 

matching the gain expected by the both the Bloomberg and MNI surveys, 

while wholesale sales were up 0.1% in the month, data released by the 

U.S. Commerce Department Wednesday showed. 

     Wholesale inventories had initially been reported as up 0.4% in the 

advance indictors report published last week. 

     Factory inventories were already reported up 0.2% and the advance 

estimate of retail inventories was a 0.5% increase. Including today's 

data, business inventories are tracking at a 0.3% increase based on an 

MNI calculation. 

     Retail trade sales, those excluding food services sales, were 

already reported up 0.5% in the May retail sales release, while factory 

shipments rose 0.1%, so MNI sees business sales tracking at a 0.2% 

increase. 

     Here are the other findings from the release: 

     - When excluding the 1.8% jump in the auto category, inventories 

would have been up 0.2%, according to an MNI calculation. Excluding a 

3.2% increase in auto sales, wholesale sales would have been down  0.2%. 

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

the sharp increase in autos and a solid 1.6% gain in professional 

equipment. Nondurables inventories increased by 0.5% in May, led by a 

3.5% increase in farm products and a 2.8% rise in miscellaneous 

nondurables. Petroleum inventories fell by 2.8%. 

     - Durables goods sales were up 0.6% in the month led by a 3.2% gain 

in automotive sales. Nondurable goods sales decreased by 0.4% in May 

with a 3.1% drop in apparel. 

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

sales ratio increased to 1.35 from 1.34 in the previous month. 

Seasonally adjusted inventories were up 7.7% year/year, sharply 

outpacing a 0.4% year/year increase in sales. The ratio was 1.26 in May 

2018. 

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

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