Total business inventories rose 0.4% in March and the y/y rate of inventory accumulation continued strong at 7.9%. The ratio of inventories-to-sales fell slightly, however, and returned to the record low average of last year.

Retail inventories rose 0.3% in March and also gained 0.3% excluding autos. Inventories of furniture & electronics increased 0.6% (6.2% y/y) following two months of decline and general merchandise doubled the prior month's increase with a 1.0% surge (6.6% y/y). Apparel inventories rose 0.5% (4.3% y/y).

Factory sector inventories grew 0.6% for the second month and the 8.9% increase versus last year remained the strongest since 1989.

Wholesale inventory accumulation moderated to 0.4%. During the last ten years there has been a 64% correlation between the y/y change in wholesale inventories and the change in imports of merchandise.

Overall business sales recovered 0.7% (6.7% y/y) after the 0.5% decline in February.