WASHINGTON - Business inventories rose 1.0% in May on a seasonally adjusted basis, the Commerce Department reported Thursday. Sales fell by 0.1%, their biggest decline since a 0.4% drop in June 2010. The inventories to sales ratio was 1.28 for the month.
The median estimate of economists polled by Thomson Reuters was for a 0.7% increase in inventories.
Retail inventories were up 0.4%. Excluding autos, retail inventories rose 0.3%. Auto inventories showed a 0.7% rise.
Wholesale inventories gained 1.8% in May, their biggest increase since a 2.7% surge in October of 2010. Manufacturers showed a 0.8% gain.
Year over year, total business inventories rose 11.6%, the same as their increase in sales. Manufacturers had 13.3% inventory growth and 11.9% sales growth. Wholesale inventories over the year were up 15.5% with sales up 14.5%. Retailers showed 6.0% annual inventory increase and 8.1% growth in sales.
In the retail inventory categories broken out by the Commerce Department in the May release, home furnishings and appliances fell 0.5%. Building materials fell 0.3%. General merchandise stores ( the Wal-Mart and Target category) showed a 0.5% inventory gain.
