Global| May 09 2017U.S. Wholesale Inventories Rise Moderately; Sales Hold Steady
by:Tom Moeller
|in:Economy in Brief
Summary
Inventories at the wholesale level rose 0.2% (3.0% y/y) during March following a 0.3% February gain, revised from 0.4%. Durable goods inventories strengthened 0.6% (2.5% y/y) after February's 0.2% rise. Motor vehicle stocks jumped [...]
Inventories at the wholesale level rose 0.2% (3.0% y/y) during March following a 0.3% February gain, revised from 0.4%.
Durable goods inventories strengthened 0.6% (2.5% y/y) after February's 0.2% rise. Motor vehicle stocks jumped 1.9% (2.3% y/y) and furniture inventories rose 0.6% (4.7% y/y). Inventories of computers and peripherals held steady (10.7% y/y), while general machinery inventories eased 0.5% (-2.5% y/y). Inventories of nondurable goods declined 0.5% (+3.9% y/y) after a 0.4% rise. Petroleum inventories fell 3.0% (+27.3% y/y). Chemical inventories jumped 1.0% (3.4% y/y). Apparel inventories eased 0.2% (-9.3% y/y), while paper and paper products gained 1.9% (2.2% y/y).
Wholesale sales remained unchanged (8.3% y/y) in March after February's 0.7% increase, revised from 0.6%. A 0.2% rise was expected in the Action Economics Forecast Survey.
Nondurable goods sales were steady (10.8%) as petroleum sales fell 0.6% (+46.7% y/y), and chemical sales declined 2.0% (+8.3% y/y). Apparel sales dropped 1.0% (-4.5% y/y). Sales by durable goods wholesalers were unchanged (7.3% y/y). Computers sales fell 0.9% (-0.6 % y/y) as machinery sales improved 1.2% (8.1% y/y). Electrical equipment sales eased 0.3% (+3.1% y/y), but motor vehicle distributors' sales rose 0.7% (7.8% y/y). Furniture sales fell 0.3% (+3.7% y/y).
Wholesalers' inventory-to-sales ratio remained steady at 1.28. The ratio has steadily declined since February 2016.
The durable goods ratio of 1.63 was down from 1.74 in January 2016. The machinery I/S ratio of 2.84 was reduced from 3.15 a year ago. The motor vehicles ratio of 1.79 was down y/y from 1.88. The furniture I/S ratio was 1.65, about the same as a year earlier. The I/S ratio in computers and equipment improved y/y to 0.91. In the nondurable goods sector, the I/S ratio was 0.96, down from 1.02 a year ago. The petroleum industry ratio was 0.43, from 0.50 a year ago. The ratio in the chemical sector of 1.15 compared to 1.21 in March 2016.
The wholesale trade figures are available in Haver's USECON database. The Action Economic Survey results are contained in AS1REPNA.
| Wholesale Sector - NAICS Classification (%) | Mar | Feb | Jan | Mar Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Inventories | 0.2 | 0.3 | -0.2 | 3.0 | 2.6 | 1.1 | 5.8 |
| Sales | 0.0 | 0.7 | 0.3 | 8.3 | -0.4 | -4.9 | 3.6 |
| I/S Ratio | 1.28 | 1.28 | 1.28 | 1.35 (Mar '16) | 1.33 | 1.32 | 1.21 |
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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