Global| May 09 2014U.S. Wholesale Sales and Inventories Are Strong
by:Tom Moeller
|in:Economy in Brief
Summary
Wholesale sales jumped 1.4% (6.5% y/y) during March following February's 0.9% gain, last month set at 0.8%. Nondurable goods sales increased 1.5% (7.9% y/y) as farm product sales surged 6.0% (-0.4% y/y). Grocery product sales also [...]
Wholesale sales jumped 1.4% (6.5% y/y) during March following
February's 0.9% gain, last month set at 0.8%. Nondurable goods sales increased
1.5% (7.9% y/y) as farm product sales surged 6.0% (-0.4% y/y). Grocery
product sales also logged strength with a 3.2% increase (10.1% y/y) and
apparel sales gained 2.3% (9.0% y/y). These gains were offset by a 0.4%
drop (+7.4% y/y) in chemical sales and a 0.2% slip (+13.9% y/y) in
petroleum sales. Durable goods sales increased 1.4% (4.9% y/y) led by a
4.2% spurt (5.7% y/y) in electrical products. Not far behind was a 2.2%
rise (6.8% y/y) in metals sales and a 1.2% improvement (2.9% y/y) in
professional equipment sales. Offsetting these gains was a 0.6% decline
(+7.6% y/y) in furniture sales which was the fourth consecutive monthly
fall. Also, automotive shipments were little-changed (1.5% y/y).
Inventories at the wholesale level increased 1.1% (5.9% y/y) during March following a little-revised 0.7% February gain. The strength owed to a 1.7% rise (5.4% y/y) in the nondurable goods sector. That was driven by a 3.3% jump (-3.6% y/y) in petroleum inventories and a 3.1% gain (1.2% y/y) in farm products. Inventories of groceries increased 2.5% (2.0% y/y) while apparel inventories were up 1.6% (5.2% y/y). Durable goods inventories gained 0.7% (6.2% y/y). Motor vehicle inventories increased 1.9% (9.5% y/y) while professional equipment inventories rose 1.2% (6.1% y/y). Electrical equipment inventories gained 0.6% (1.5% y/y) and machinery improved 0.5% (11.5% y/y).
The wholesale sector's inventory-to-sales ratio slipped m/m to 1.18 but it's risen from 1.16 at year-end. In the durable goods sector, the I/S ratio inched lower to 1.59 versus its recent 1.60 high. The machinery ratio was strong at 2.49 and it was firm in furniture at 1.66. In the nondurables sector, the I/S ratio of 0.84 was down slightly versus last year. The 1.95 ratio in apparel contrasted with 0.31 in petroleum.
The wholesale trade figures are available in Haver's USECON database.
| Wholesale Sector - NAICS Classification (%) | Mar | Feb | Jan | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Inventories | 1.1 | 0.7 | 0.8 | 5.9 | 4.0 | 5.5 | 9.4 |
| Sales | 1.4 | 0.9 | -1.8 | 6.5 | 4.3 | 4.8 | 12.4 |
| I/S Ratio | 1.18 | 1.19 | 1.19 | 1.19 (Mar'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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