·
Total business inventories jumped 0.7% during June after an upwardly
revised 0.4% May increase. The latest increase exceeded Consensus
expectations for a 0.5% rise and it was the strongest gain since
January. The three-month growth in inventories rose to 6.2% (AR) from
roughly 4% during the prior two months.
· Higher wholesale inventories led the gain the total with a 1.1% jump during June and at a 14.1% rate during the last three months, again boosted by the rise in oil prices. Nevertheless, less petroleum wholesale inventories rose at a 12.0% rate during those three months which was more than twice the rate of increase during all of last year.
· Retail inventories fell 0.1% after a revised 0.3% May decline. The drops left the three-month growth rate negative at -0.5% reflecting the draw-down of automobile inventories. Inventories of motor vehicle & parts fell at a 6.2% annual rate during the last three months due to further production cutbacks. Outside of autos, retail inventories rose at a 2.2% rate over the last three months and that reversed three months of decumulation.
· The industry detail in the retail sector indicated that lower apparel inventories led the recent weakness in the total with a 0.9% rate of decline. Furniture inventories rose at a 3.9% rate during the last three months and general merchandise inventories rose at a 2.3% rate. Both of these gains reverse prior declines. Clothing & accessory store inventories still fell at a 0.9% rate over the last three months after an 8.1% rate of decline back in March.
· Factory inventories jumped 1.0% and that left the three-month rate of accumulation steady at 6.4%.
· Total business sales jumped another 1.7% led higher by the rise in oil prices which lifted factory sales by 1.6%.