Last Update: 10-Jul-15 10:27 ET
- Wholesale inventories increased 0.8% in May after increasing an unrevised 0.4% in April. The Briefing.com Consensus expected wholesale inventories to increase 0.3%.
- Durable goods inventories increased 0.6%, up from a 0.1% increase in April. Inventories rose in every durable goods sector except for a 0.4% decline from the miscellaneous category. Strong growth was recorded in computer equipment (2.5%) and automotive (2.0%).
- Nondurable goods inventories increased 1.2% in May after increasing 1.0% in April. Much of the gain was the result of higher prices, which helped drive up petroleum inventories by 4.4%. Drug inventories increased 2.7%.
- Wholesale sales increased 0.3% in May, down from a 1.7% increase in April. Durable goods sales declined 0.1% in May and nondurable goods sales increased 0.7%.
- The inventory-to-sales ratio remained at 1.29 for a second consecutive month.
- Wholesale inventories are just one component of total business inventories. Manufacturing and retail inventories make up the rest of total business inventories. The market ignores this release and doesn't pay much attention to the full business inventory release that comes a few days later. Improved inventory management in recent years has reduced the economic swings associated with inventories and has helped produce a long-term downtrend in the inventory-to-sales ratio.