WASHINGTON – The value of business inventories in May was up 0.4%, as expected by analysts and the MNI calculated prediction, data released by the Commerce Department Monday morning showed.
Retail inventories increased 0.4%, unrevised from the advance estimate of a 0.4% gain. Data from the wholesale inventory report showed a 0.6% rise in the month, which was up from the 0.5% rise in the advance report, while factory inventories were up 0.2%.
According to an MNI calculation, if a 0.9% increase in motor vehicle inventories had been excluded, total business inventories would have been up 0.3% in May. The increase in motor vehicles was revised down to 0.9% from the 1.0% gain in the advance estimate.
After excluding the increase in motor vehicle inventories, the remaining retail categories were up 0.1%, unrevised from the advance estimate for a 0.1% gain. There were increases in every published category except furniture and apparel.
According to an MNI calculation, the unpublished retail categories rose 0.1% following a 0.4% increase in April.
May business sales posted a 1.4% increase in the month, higher than the 1.3% rise forecast by MNI after the wholesale data released. but before the upward revision to May retail trade sales released earlier Monday morning.
Retail sales excluding food services rose 1.1% in May, revised up from the 0.8% gain reported last month. Factory shipments, which are equal to sales in this report, were up 0.6%, while wholesale sales surged by 2.5%.
The inventory-to-sales ratio fell to 1.34 in May from 1.35 due to the larger gain in sales than in inventories this month. The ratio remains well below the 1.39 level seen in May 2017, as sales growth has outpaced inventory growth over the last year.
