The value of business inventories in October was up 0.6% from September, as expected by analysts and an MNI projection, data released by the Commerce Department Friday morning showed.
Retail inventories rose 0.8%, revised down from the 0.9% gain in the advance estimate. Data from the wholesale inventories report showed a 0.8% rise in the month, which was revised up from the 0.7% gain in the advance report, while factory inventories were up 0.1%.
According to an MNI calculation, if a 1.1% increase in motor vehicle inventories had been excluded, total business inventories would have been up 0.5% in October. The increase in motor vehicles inventories was revised down from a 1.2% gain in the advance estimate.
After excluding the sharp increase in motor vehicle inventories, the remaining retail categories were still up 0.7%, unrevised from the advance estimate. All of the other retail inventory components increased in October.
At the same time, the relatively large unpublished retail category was up 0.5% following a 0.1% decrease in September, according to an MNI calculation.
October business sales posted a 0.3% increase in the month, above the 0.2% gain forecast by MNI after the wholesale data were released, but before the upward revision to October retail trade sales released earlier Friday morning.
Retail sales excluding food services were up 1.2% in October, revised up from the 0.9% gain reported last month. There was a previously announced 0.1% decline for factory shipments, which are equal to sales in this report, and wholesale sales posted a 0.2% decline.
The inventory-to-sales ratio rose to 1.35 in October from 1.34 in September due to the larger gain in inventories compared to sales in October. The ratio remained slightly below the 1.36 level seen in October 2017, as sales growth has outpaced inventory growth over the last year.
