WASHINGTON — July wholesale inventories increased by 0.6% while wholesale sales were flat in the month, data released by the U.S. Commerce Department on Tuesday showed.
Given that wholesale inventories rose 0.6% and factory inventories were already reported up 0.8%, and barring no revision to the 0.4% increase in retail inventories, an MNI calculation is expecting an increase of 0.6% for business inventories, which will be released on Sept. 14.
With the addition of the flat reading in wholesale sales to the 0.4% increase for retail trade sales from last month's advanced sales release and the flat reading for factory shipments already reported, an MNI calculation predicts that business sales will see a 0.1% rise, barring no large revision to retail trade sales data.
Although wholesale inventories rose while sales came in flat, the inventory/sales ratio rose slightly. Inventories were up 5.0% year/year, while sales have rose 9.8% from July 2017. The ratio is down from the 1.32 ratio seen one year ago due to sales growth outpacing inventories over the past year.
When excluding the 1.1% decline in auto inventories, inventories would have been up 0.8%, according to an MNI calculation. Excluding a 0.3% decrease in auto sales, sales would have been flat, also according to an MNI calculation.
The value of durable inventories rose by 0.8% in the month, led by gains in computer equipment, metals, and lumber. Nondurables inventories rose 0.3% in July despite the 1.7% decline in petroleum and on gains in paper, farm products, and chemicals.
Durables goods sales were flat in the month, on generally lower categories. Nondurable goods sales fell by 0.1% in July on declines in most categories.
