Global| Oct 07 2016U.S. Wholesale Inventories Decline; Sales Jump
by:Tom Moeller
|in:Economy in Brief
Summary
Inventories at the wholesale level fell 0.2% (-0.1% y/y) during August after a 0.1% easing in July, revised from no change. The advance report had indicated a 0.1% August dip. Inventories of durable goods rose 0.2% (-1.9% y/y) after a [...]
Inventories at the wholesale level fell 0.2% (-0.1% y/y) during August after a 0.1% easing in July, revised from no change. The advance report had indicated a 0.1% August dip. Inventories of durable goods rose 0.2% (-1.9% y/y) after a 0.3% rise. Motor vehicle inventories gained 0.7% (0.3% y/y) while furniture inventories rose 0.4% (1.4% y/y). Computer equipment jumped 1.9% (-3.5% y/y) and machinery inventories gained 0.1% (-15.3% y/y). Inventories of nondurable products fell 0.7% (+2.8% y/y) after a 0.8% decline. Apparel inventories declined 2.1% (-1.2% y/y) and offset a 2.4% rise in petroleum (+4.0% y/y).
Wholesale sales increased 0.7% (0.6% y/y) following a 0.6% fall. No change was expected in the Action Economics Forecast Survey. Sales of nondurable goods jumped 2.0% (0.5% y/y) as farm product sales surged 6.7% (10.0% y/y). Petroleum sales increased 2.0% (-8.1% y/y), while apparel sales increased 2.4% (0.3% y/y). Durable goods sales declined 0.5% (+0.7% y/y). Motor vehicle sales increased 1.4% (-1.6% y/y), but machinery sales declined 2.7% (-1.3% y/y). Computer equipment sales were off 1.6% (-2.0% y/y) and electrical product sales fell 0.4% (+2.2% y/y).
The inventory-to-sales ratio declined to 1.33 from 1.34. These ratios remained lower than January's 1.37 peak. The durable goods ratio rose to 1.67, but was down y/y from 1.72. The machinery I/S ratio was stable y/y at 3.08, but the motor vehicles ratio rose y/y to 1.82. The computer industry's I/S ratio also was stable at 0.83. In the nondurable goods sector, the I/S ratio of 1.01 was up from 0.87 in all of 2014. The chemical sector's ratio of 1.26 compared to 1.13 in 2014. In the petroleum area, the I/S ratio of 0.47 compared to 0.33 two years ago.
The wholesale trade figures are available in Haver's USECON database. The Action Economic Survey results are contained in AS1REPNA.
| Wholesale Sector - NAICS Classification (%) | Aug | Jul | Jun | Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Inventories | -0.2 | -0.1 | 0.3 | -0.1 | 1.8 | 6.4 | 3.8 |
| Sales | 0.7 | -0.6 | 1.7 | 0.6 | -4.3 | 3.6 | 3.0 |
| I/S Ratio | 1.33 | 1.34 | 1.33 | 1.34 (Aug '15) | 1.32 | 1.21 | 1.18 |
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.
More Economy in Brief
