During August, business inventories rose 0.6% following a 0.8% July rise. Though the y/y trend gain fell, these latest gains were elevated versus the Q2 average of 0.2%. Behind the quicker increase was a 0.9% rise in merchant wholesalers inventories driven by a 9.4% surge (-2.7% y/y) in petroleum inventories. Less petroleum, wholesale inventories ticked up 0.1% (5.8% y/y) in August. Factory inventories rose a steady 0.6% (3.5% y/y). Inventories at the retail level also rose 0.6% (7.8% y/y). That was led by a 1.5% jump in autos (20.3% y/y) after a 2.7% July increase. Nonauto retail inventory accumulation was negligible.

Business sales increased 0.5% after a 0.9% July rise. Therefore, the inventory-to-sales ratio remained a constant 1.28. Retail sales surged 1.3% (4.9% y/y) as auto sales jumped. Excluding autos, sales increased 1.1% (4.6% y/y). As a result, the nonauto retail I/S ratio remained roughly stable at 1.20. Sales of merchant wholesalers increased 0.9% (2.1% y/y) with the rise in oil prices. That was enough to leave the I/S ratio roughly constant at 1.20. Factory shipments fell 0.3% pushing the I/S ratio up slightly to 1.28.

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