Global| Jun 09 2015U.S. Wholesale Inventory Accumulation Picks Up in April; Trend Increase Slows
by:Tom Moeller
|in:Economy in Brief
Summary
Inventories at the wholesale level increased 0.4% during April (4.5% y/y) following two months of 0.2% increase. Despite the monthly rise, y/y growth decelerated to 4.5%, its slowest since early last year. Durable goods inventories [...]
Inventories at the wholesale level increased 0.4% during April (4.5% y/y)
following two months of 0.2% increase. Despite the monthly rise, y/y growth
decelerated to 4.5%, its slowest since early last year. Durable goods
inventories ticked just 0.1% higher (6.6% y/y). Motor vehicle inventories
increased 1.8% (13.2% y/y) and machinery inventories advanced 0.7% (6.8% y/y).
Electrical equipment inventories declined 1.2% (+7.2% y/y) and furniture
inventories slipped 0.2% (+6.2% y/y). Nondurable goods inventories increased 0.8%
(1.1% y/y). Petroleum inventories gained 2.3% (-20.7% y/y) and apparel
inventories rose 2.7% (8.6% y/y). Chemical inventories gained 2.2% (0.2% y/y)
while paper inventories jumped 3.9% (3.5% y/y).
Wholesale sales improved 1.6% (-3.3% y/y) following declines during each of the prior eight months. Durable goods sales improved 1.2% (2.4% y/y) as electrical equipment sales increased 3.2% (8.7% y/y). Motor vehicle sales gained 3.2% (8.1% y/y). In the nondurable goods area, sales increased 2.0% (-8.2% y/y). The gain was paced by a 4.9% rise (-37.3% y/y) in petroleum sales. Chemical sales declined 1.4% (-5.0% y/y) and apparel sales were off by 1.5% (+5.6% y/y). Sales of paper & paper products increased 1.1% (1.9% y/y).
The inventory-to-sales ratio slipped m/m to 1.29. The ratio nevertheless remained near its highest level since 2009. The durable goods I/S ratio fell to 1.64, but still it was higher than its 2010 low of 1.48. The nondurable ratio slipped m/m to 0.95 but that was up from 0.87 last year.
The wholesale trade figures are available in Haver's USECON database.
| Wholesale Sector - NAICS Classification (%) | Apr | Mar | Feb | Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Inventories | 0.4 | 0.2 | 0.2 | 4.5 | 6.7 | 4.2 | 6.6 |
| Sales | 1.6 | -0.3 | -0.6 | -3.3 | 4.3 | 3.1 | 5.9 |
| I/S Ratio | 1.29 | 1.30 | 1.30 | 1.19 (Apr.'14) | 1.20 | 1.18 | 1.16 |
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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