Total business inventories increased 0.6% (3.7% y/y) during January, the same as in December, revised from 0.4%. Total business sales fell 0.2% (+5.7% y/y), the first decline since last March. The changes in inventories and sales caused the inventory-to-sales ratio to rise modestly to 1.34. That remained, however, well below its 1.42 peak early in 2016.

Retail inventories increased 0.7% (2.3% y/y) after a 0.3% rise. Auto inventories rose 1.7% (2.2% y/y) following four straight months of decline. Nonauto retail inventories notched 0.1% higher (2.4% y/y) after three months of firm accumulation. Grocery store inventories increased 0.2% (4.4% y/y) after surging in the prior two months. Building materials inventories rose 0.5% (3.8% y/y) after a -0.7% rise. Clothing store inventories gained 0.3% (-0.8% y/y), only the second m/m increase since last March. General merchandise inventories rose 0.7% (-0.3% y/y) after a 0.2% decline. Furniture store inventories declined 0.5% (+2.1% y/y), the third decline in four months. As reported last week, wholesale inventories increased 0.8% (4.8% y/y) in January following a 0.7% rise. Also reported earlier, factory sector inventories rose 0.3% (4.0% y/y), matching the weakest rise since May.

Retail sales slipped 0.1% (+4.1% y/y) following a 0.2% decline, while nonauto sales improved 0.1% (+4.7% y/y) after a 0.2% decline. Wholesale sector sales declined 1.1% (+6.7% y/y) after a 0.8% rise, as shipments from the factory sector increased a steady 0.6% (6.1% y/y).

The inventory-to-sales ratio in the retail sector rose to 1.44, the highest level in four months, but down sharply from the 1.49 August high. The nonauto I/S ratio held steady at 1.21 and remained near its lowest level since early-2012. The wholesale sector I/S ratio rose to 1.26, its highest point since September. In the manufacturing sector, the I/S ratio held steady at 1.35, its lowest point in three years.

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