Last Update: 10-Jul-19 10:22 ET
- Wholesale inventories increased 0.4% in May, as expected, on top of an unrevised 0.8% increase for April.
- Wholesale sales increased 0.1% following an unrevised 0.4% decline in April.
- On a year-over-year basis, total sales were up 0.4% while total inventories were up 7.7%.
- Durable inventories increased 0.3% in May, driven by a 1.8% increase in automotive inventories and a 1.6% increase in professional equipment inventories.
- Nondurable inventories increased 0.5% in May, driven by a 3.5% increase in farm products inventories.
- The inventories-to-sales ratio increased to 1.35 from 1.34 in April. In the same period a year ago, the ratio stood at 1.26.
- The key takeaway from the report is that inventory growth continues to outpace sales growth on a year-over-year basis, which should help keep price pressures in check.