–Retail Auto Inventories Up 0.4%; Retail Ex Auto Falls 0.2%
–Business Sales Up 0.7% in July, Inventory/Sales Ratio Dips To 1.27
By Kevin Kastner
WASHINGTON (MNI) – The value of business inventories rose 0.4% in
July, with the increase smaller than expected due to a flat reading for
retail inventories, data released Wednesday morning by the Commerce
Department showed.
Retail motor vehicle inventories rose 0.4% despite a modest sales
increase that month. The remaining retail inventories categories
combined for a 0.2% drop, with declines in inventories at general
merchandise stores, including department stores, as well as declines at
furniture stores and building materials stores.
In addition, an MNI calculation of retail inventories not included
in the published categories shows a decline of 0.4% after a 0.4% rise in
the previous month.
These declines were partially offset by inventory gains at food and
beverage stores and clothing stores.
Factory inventories were already reported up 0.5% in July, while
wholesale inventories jumped 0.8%.
Overall business inventories would have been still have been up
0.4% in July even if the rise in retail motor vehicle inventories was
excluded, based on a Market News International calculation.
Meanwhile, business sales rose 0.7% in July on a sharp increase in
manufacturing shipments, which are counted as sales in this report.
Retail sales excluding food services rose 0.3% in the month, while
wholesale sales were flat.
Sales were up sharply from a year ago, running 9.8% ahead of their
July 2010 pace before seasonal adjustment and 12.0% after seasonal
adjustment.
At the same time, inventories were 10.7% above their year-ago
levels before seasonal adjustment and up 10.6% after seasonal
adjustment.
In July, the inventory-to-sales ratio fell to 1.27 from the 1.28
ratio posted in June and the 1.29 ratio in July 2010.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
