Global| Apr 13 2011U.S. Business Inventory Accumulation Slows
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. Commerce Department reported that business inventories rose a lessened 0.5% in February following a 1.0% January gain, last month reported at 0.9%. A 0.8% gain in inventories had been expected by Bloomberg. The slower rate of [...]
The U.S. Commerce Department reported that business inventories rose a lessened 0.5% in February following a 1.0% January gain, last month reported at 0.9%. A 0.8% gain in inventories had been expected by Bloomberg. The slower rate of inventory accumulation was accompanied by an inventory-to-sales ratio which remained near its all-time low as business sales rose 0.2% (10.9% y/y).
The February slowdown in inventory accumulation was led by a -0.4% decline in retail inventories, paced by a 1.4% drop (+8.4% y/y) in motor vehicles. Outside of autos, inventory accumulation also slowed. The 0.1% gain was the weakest since October. It occurred as furniture, home furnishing & appliance inventories fell 1.2% (+3.7% y/y) and apparel (5.1% y/y) and general merchandise inventories (7.4% y/y) both rose just 0.2%.
Factory sector inventories also rose a slower 0.8%, roughly half the January gain. The slowdown was widespread amongst industries and accompanied an easier 1.6% (13.7% y/y) gain in petroleum refineries' inventories. Elsewhere in the nondurable sector, apparel inventories rose a steady 2.0% (22.3% y/y) but textile mill inventories fell 0.2% (+11.6% y/y). Durable goods inventories rose a steady 1.0% (10.5% y/y).
Wholesale inventories rose a steady 1.0% in February with the gain paced by a 9.3% rise in petroleum products (25.3% y/y). Less petroleum wholesale inventories rose a lesser 0.5% but still increased a strong 12.0% y/y as business activity improved.
USECON database. Note that in a value-added feature, the database includes series calculated by Haver database managers showing sales, inventories and I/S ratios for total business less motor vehicle dealers and related wholesale operations.
| Business Inventories (%) | Feb | Jan | Dec | Feb Y/Y | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Total | 0.5 | 1.0 | 1.1 | 9.1 | 8.0 | -9.9 | 0.8 |
| Retail | -0.4 | 0.3 | 0.6 | 5.5 | 6.1 | -10.4 | -3.3 |
| Retail ex Motor Vehicles | 0.1 | 0.4 | 1.0 | 4.4 | 3.6 | -4.8 | -1.9 |
| Wholesale | 1.0 | 1.0 | 1.2 | 12.7 | 11.0 | -11.8 | 3.7 |
| Manufacturing | 0.8 | 1.5 | 1.4 | 9.4 | 7.9 | -8.8 | -0.8 |
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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