Global| Dec 09 2014U.S. Wholesale Inventory Growth Outpaces Sales
by:Tom Moeller
|in:Economy in Brief
Summary
Inventories in the wholesale sector during October increased 0.4% (6.8% y/y) following an revised 0.4% September rise, earlier reported as 0.3%. Nondurable goods inventories led the gain with a 1.2% increase 4.2% y/y), paced by a 3.2% [...]
Inventories in the wholesale sector during October
increased 0.4% (6.8% y/y) following an revised 0.4% September rise, earlier
reported as 0.3%. Nondurable goods inventories led the gain with a 1.2% increase
4.2% y/y), paced by a 3.2% gain (20.0% y/y) in drugs & sundries. Paper &
paper products inventories increased 1.6% (2.6% y/y) and groceries gained 1.1%
(4.1% y/y). To the downside were petroleum inventories, off 1.9% (-17.0% y/y),
and chemical inventories by 1.8% (+2.6% y/y). Durable goods inventories were
roughly unchanged (8.5% y/y) as a 1.6% rise (10.7% y/y) in hardware, plumbing
& heating equipment was offset by a 1.4% drop (+7.9% y/y) in motor vehicles.
Furniture inventories also fell 0.7% (+3.6% y/y).
The inventory-to-sales ratio was unchanged at 1.19 for the third straight month. The durable goods ratio of 1.57 reflected 2.43 in the machinery sector and 1.02 in electronic goods. The I/S ratio for nondurable goods increased to 0.86 as apparel held at 1.90 and petroleum ticked up to 0.32.
The wholesale trade figures are available in Haver's USECON database.
| Wholesale Sector - NAICS Classification (%) | Oct | Sep | Aug | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Inventories | 0.4 | 0.4 | 0.6 | 6.8 | 4.0 | 5.5 | 9.4 |
| Sales | 0.2 | 0.0 | -0.8 | 4.3 | 4.3 | 4.8 | 12.4 |
| I/S Ratio | 1.19 | 1.19 | 1.19 | 1.16 (Oct.'13) | 1.17 | 1.18 | 1.15 |
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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