Global| May 13 2005U.S. Business Inventories Rose
by:Tom Moeller
|in:Economy in Brief
Summary
Total business inventories rose 0.4% in March and the y/y rate of inventory accumulation continued strong at 7.9%. The ratio of inventories-to-sales fell slightly, however, and returned to the record low average of last year. Retail [...]
Total business inventories rose 0.4% in March and the y/y rate of inventory accumulation continued strong at 7.9%. The ratio of inventories-to-sales fell slightly, however, and returned to the record low average of last year.
Retail inventories rose 0.3% in March and also gained 0.3% excluding autos. Inventories of furniture & electronics increased 0.6% (6.2% y/y) following two months of decline and general merchandise doubled the prior month's increase with a 1.0% surge (6.6% y/y). Apparel inventories rose 0.5% (4.3% y/y).
Factory sector inventories grew 0.6% for the second month and the 8.9% increase versus last year remained the strongest since 1989.
Wholesale inventory accumulation moderated to 0.4%. During the last ten years there has been a 64% correlation between the y/y change in wholesale inventories and the change in imports of merchandise.
Overall business sales recovered 0.7% (6.7% y/y) after the 0.5% decline in February.
| Business Inventories | March | Feb | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Total | 0.4% | 0.5% | 7.9% | 7.7% | 1.4% | 1.6% |
| Retail | 0.3% | 0.4% | 4.8% | 5.7% | 3.9% | 5.9% |
| Retail excl. Autos | 0.3% | 0.5% | 6.5% | 5.9% | 2.0% | 2.3% |
| Wholesale | 0.4% | 0.6% | 10.8% | 10.8% | 2.0% | 1.2% |
| Manufacturing | 0.6% | 0.6% | 8.9% | 7.5% | -1.3% | -1.8% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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