Total business inventories fell 0.4% m/m (-0.1% y/y) in February, in line with expectations, following a downwardly revised 0.3% m/m decline in January. The anticipated figure is from the Informa Global Markets survey. Business sales decreased 0.5% m/m (+1.4% y/y), offsetting a slightly downwardly revised 0.5% m/m gain in January. The similar monthly falls in sales and in inventories in February left the inventory-to-sales ratio unchanged at 1.37, its lowest reading since November 2018.

Retail inventories declined 0.3%m/m (-0.6% y/y) for their fourth consecutive monthly decline. Excluding a 0.8% m/m drop in motor vehicle inventories, the remainder of retail inventories was unchanged in February. Wholesale inventories slumped 0.7% m/m (-1.3% y/y) in February while manufacturing inventories decreased 0.4% m/m (+1.6% y/y).

Sales at retail stores (excluding sales of food services) fell 0.5% m/m in February but this news was eclipsed by the stunning 6.2% m/m collapse reported for March (in a separate report this morning) as the shutdowns generated by the spread of the coronavirus seriously dented consumer spending. Wholesale sector sales slumped 0.8% m/m (+1.1% y/y) in February after a 1.3% m/m jump in January. Shipments from the factory sector declined 0.2% (-1.1% y/y) in February on top of a 0.6% m/m decline in January.

Inventory-to-sales ratios across all sectors were unchanged in February as both sales and inventories declined by roughly equal amounts. The overall I/S ratio remained at 1.37. The retail sector I/S ratio remained at 1.42, the lowest level since November 2014. For merchant wholesalers, the I/S ratio stayed at 1.31, the lowest since November 2018. The factory sector I/S ratio was steady at 1.40, the highest level since November 2016.

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