The U.S. Commerce Department reported that during May, business inventories rose 0.3% for the third consecutive month. The modest gain lowered the y/y rise to 5.2%, its least since May of 2010. Business sales slipped 0.1% for the second consecutive month and the y/y increase fell to 5.1%, its least since December 2009. As a result, the inventory/sales ratio ticked up to 1.27, its highest in a year.

Retail sector inventories rose 1.0% due to a strong 1.9% rise (14.6% y/y) in motor vehicles. Inventories of home furnishings & appliances rose 0.8% (0.6% y/y). General merchandise inventories increased 0.9% (3.4% y/y) and apparel inventories gained 0.6% (4.8% y/y). Wholesale inventories increased 0.3% (6.4% y/y) while petroleum inventories fell 3.6% (-4.3% y/y). Less petroleum wholesale inventories rose 0.5% (7.1% y/y). Factory inventories fell 0.2% (+3.5% y/y).

The manufacturing and trade data are in Haver's USECON database.