WASHINGTON — October wholesale inventories increased by 0.8%, revised upward from the 0.7% increase reported in the advance estimate, while wholesale sales were down 0.2% in the month, data released by the U.S. Commerce Department on Friday showed.
Given that wholesale inventories rose 0.8% and factory inventories were already reported up 0.1%, and barring no revision to the 0.9% increase in retail inventories, an MNI calculation is expecting an increase of 0.6% for business inventories, which will be released on December 14.
With the addition of the 0.2% decrease in wholesale sales to the 0.9% increase for retail trade sales from last month's advanced sales release and the 0.1% decrease for factory shipments already reported, an MNI calculation predicts that business sales will see a 0.2% increase, barring no large revision to retail trade sales data.
Given the decrease in sales and increase in inventories, the inventory to sales ratio rose in the month. Wholesale inventories and sales both rose year over year, but sales rose less than inventories. Inventories were up 6.9% year/year, and sales were up 6.8% from October 2017. The ratio is unchanged from the 1.28 ratio seen one year ago.
When excluding the 3.4% rise in auto inventories, inventories would have been up 0.5%, according to an MNI calculation. Excluding a 1.3% decrease in auto sales, sales would have been down 0.1%, also according to an MNI calculation.
The value of durable inventories rose by 1.7% in the month, led by increases in autos, computer equipment, and machinery. Nondurables inventories fell 0.6% in October on declines in petroleum farm products, but were partially offset by a rise in apparel.
Durables goods sales were down in the month, on declines in autos, furniture, and hardware. This was partially offset by a rise in computer equipment. Nondurable goods sales fell by 0.3% in October on declines in farm products and apparel.
