Total business inventories increased 0.4% in December (3.2% y/y), the same as during their unrevised November reading. Total business sales gained 0.6% (6.7% y/y) after a 1.4% rise, revised from 1.2%. The changes in inventories and sales left the inventory/sales ratio steady at 1.33, the lowest level since November 2014.

Retail inventories increased 0.2% (2.3% y/y), the same as during November. Auto inventories fell 0.4% (+2.5% y/y), the fourth consecutive monthly decline. Nonauto retail inventories improved 0.5% (2.1% y/y) after two months of 0.4% increase. Grocery store inventories increased 1.0% (4.1% y/y) after a similar increase in November. Building materials inventories rose 0.4% (3.3% y/y) for the second straight month. Clothing store inventories gained 0.5% (-1.2% y/y) after eight consecutive months of decumulation while general merchandise inventories rose 0.2% (-0.7% y/y) after four months of little change. Furniture store inventories increased 1.7% (3.2% y/y) following two months of decline. As reported last week, wholesale inventories increased 0.4% (3.4% y/y) in December following a 0.6% rise. Also reported earlier, factory sector inventories strengthened 0.5% (3.8% y/y) for the second straight month.

Retail sales eased 0.1% (+5.3% y/y) following a 0.8% gain, while nonauto sales also dipped 0.1% (+6.2% y/y) after a 1.4% rise. Wholesale sector sales strengthened 1.2% (9.1% y/y) after a 1.9% rise, as shipments from the factory sector increased 0.6% (5.6% y/y), strong for the fifth straight month.

The inventory-to-sales ratio in the retail sector rose to 1.43. That left the ratio at its lowest point, however, in three years, down sharply from the 1.49 August high. The nonauto I/S ratio also ticked up to 1.21, but remained near its lowest level since early-2012. The wholesale sector I/S ratio eased to 1.22, the lowest point in three years. In the manufacturing sector, the I/S ratio held steady at 1.35, also its lowest point in three years.

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