–Excluding Autos, Wholesale Inventories Rose 0.2%, Sales Fall 0.9%
By Kevin Kastner
WASHINGTON (MNI) – The value of wholesale inventories rose 0.3% in
May, while sales fell 0.8%, data released Wednesday morning by the
Commerce Department showed.
The drop in sales was the largest monthly decline since a 3.6%
petroleum-led plunge in March 2009.
As a result of this month’s inventories rise and sales decline, the
overall inventory-to-sales ratio rose to 1.18, up from 1.17 both in
April 2012 and in May 2011. The ratio the highest since a matching 1.18
reading in July 2011.
The value of durable inventories rose 0.6% in the month, as auto
inventories rose 1.3%. The remaining durables components were generally
higher in the month, with the exception of declines in metals and
miscellaneous durables.
Nondurables inventories fell 0.2%, with mixed movements in the
component categories. Petroleum inventories fell 3.6%, but drug
inventories rose 2.8%.
Durables goods sales rose 0.6%, led by a 0.9% rise in auto sales
and a 2.2% increase in machinery sales. These were offset by declines in
other categories such as lumber and metals.
Nondurable goods sales plunged 1.9%, with petroleum goods sales
down 4.7%. The remaining component were generally lower, except for
gains in paper sales and alcohol sales.
Excluding the auto category, wholesale inventories would have been
up 0.2% in May after a 0.2% rise in the previous month, an MNI
calculation showed. Sales would have been down 0.9% in May if auto sales
were excluded. This followed a 0.5% rise in April.
Before seasonal adjustment, total wholesale inventories rose 6.6%
from May 2011, while unadjusted sales were up 8.7% year over year.
Factory inventories fell 0.2% in May, based on data already
released, so the outlook for business inventory growth appears to be for
mixed pending the retail inventories data when they are released.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
