Global| May 09 2013U.S. Wholesale Inventories Increase as Sales Move Lower
by:Tom Moeller
|in:Economy in Brief
Summary
Inventories at the wholesale level rose 0.4% (4.7% y/y) during March following a 0.3% slip in February. Inventories of hardware, plumbing and heating equipment led the rise with a 2.1% gain (8.3% y/y) while apparel inventories were up [...]
Inventories at the wholesale level rose 0.4% (4.7% y/y) during March following a 0.3% slip in February. Inventories of hardware, plumbing and heating equipment led the rise with a 2.1% gain (8.3% y/y) while apparel inventories were up 1.7% (3.3% y/y). Inventories of motor vehicles gained 1.2% (-0.3% y/y) and machinery, equipment & supplies inventories 1.2% (15.2% y/y). Offsetting these gains was a 0.3% decline (+7.7% y/y) in professional & commercial equipment while petroleum inventories fell 3.4% (-8.8% y/y).
Wholesale sector sales fell 1.6% (+1.3% y/y). Lower petroleum sales led the decline with a 7.5% drop (-2.5% y/y) as prices moved down. Sales of apparel dropped 5.5% (+1.3% y/y) and machinery sales fell 1.5% (+2.6% y/y). Moving the other way were motor vehicle sales which posted a 1.7% gain (5.6% y/y).
The wholesale sector's inventory-to-sales ratio moved up to 1.21 in March. The durable goods ratio was at the cycle's high of 1.61. The I/S ratio in the nondurables sector rose to 0.89 but has been comparatively steady since 2010.
The wholesale trade figures are available in Haver's USECON database. The expectation figure is in AS1REPNA.
| Wholesale Sector - NAICS Classification (%) | Mar | Feb | Jan | Y/Y | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Inventories | 0.4 | -0.3 | 0.8 | 4.7 | 5.7 | 9.9 | 10.1 |
| Sales | -1.6 | 1.5 | -0.8 | 1.3 | 4.8 | 13.6 | 11.6 |
| I/S Ratio | 1.21 | 1.19 | 1.21 | 1.17(Mar 2012) | 1.19 | 1.16 | 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.
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