Total business inventories increased 0.6% (4.0% year-on-year) during February, the third consecutive monthly gain of this magnitude. Total business sales rose 0.4% (+5.8% y/y), following a 0.3% decline in January. The inventory-to-sales ratio was unchanged at 1.35. The inventory-to-sales ratio began to rise in 2014 peaking at 1.42 in 2016. It has fallen since then though it remains elevated relative to the 2010-to-2014 mean and median of 1.28.

Retail inventories increased 0.4% (2.4% y/y) in February after a 0.7% rise in January. Auto inventories grew 0.9% (2.2% y/y) after a 1.7% jump. Auto inventories, which comprise 35% of retail inventories, declined late last year; thus auto inventories remain below their mid-2017 levels. Non-auto retail inventories notched 0.2% higher (2.6% y/y). General merchandise inventories, the second largest sector, rose 0.3% (+0.6% y/y) after a 0.7% increase. The troubled department store sector--a subset of general merchandise--saw inventories edge up 0.1% (-3.9% y/y). This is the third consecutive monthly gain after 11 months of decline. Building materials inventories jumped 0.9% (4.8% y/y), while clothing stores rose 0.7% (-0.2% y/y), the third consecutive monthly increase after nine months of decline. As reported last week, wholesale inventories grew 1.0% (5.5% y/y) following a 0.9% rise. Factory sector inventories rose 0.3% (4.2% y/y).

Retail sales declined 0.1% in February (+4.2% y/y) with non-auto sales up 0.2% (5.0% y/y). Note: the advanced retail sales data for March was released today showing a 0.6% gain (4.7% y/y). Wholesale sector sales rebounded 1.0% (+6.8% y/y) in February after a 1.5% drop. Shipments from the factory sector increased a 0.2% (6.1% y/y).

The inventory-to-sales (I/S) ratio in the retail sector rose to 1.45 in February, the highest level in six months. The non-auto I/S ratio held steady at 1.21 and remained near its lowest level since early-2012. The wholesale sector I/S ratio was unchanged at 1.26. The manufacturing sector the I/S ratio also held steady at 1.35, its lowest point in three years.

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