Total business inventories held steady during August (2.4% y/y) for a second month. Revisions to the July figures were minimal. These figures suggest inventories will have little effect on real GDP growth this quarter as in Q2.

Retail inventories increased 0.3% (4.5% y/y) in August, after a 0.7% jump. Motor vehicle & parts inventories advanced 0.2% (6.0% y/y). Outside of the vehicle sector, inventories gained 0.4% (3.7% y/y) paced by a 0.7% rise (6.4% y/y) in building materials. Elsewhere, increases were moderate. Furniture & home furnishings inventories gained 0.4% (-0.7% y/y) while clothing & accessory inventories also rose 0.4% (6.2% y/y). Inventories at food and beverage stores increased 0.3% (2.3% y/y) and general merchandise inventories rose 0.2% (2.8% y/y).

Merchant wholesalers inventories ticked 0.1% higher (4.1% y/y) in August, after a 0.3% decline while the value of factory sector stockpiles declined 0.3% (-0.4% y/y) for a second straight month.

August business sales declined 0.6% (-3.1% y/y) after a 0.1% uptick. The decline was paced by a 1.0% drop (-4.7% y/y) in wholesale sales followed by a 0.7% decline (-4.9% y/y) in factory sector shipments. Retail sales eased 0.1% (+0.8% y/y) following a 0.8% increase. Sales excluding motor vehicles fell 0.2% (-0.7% y/y) after a 0.6% rise.

The business sector inventory-to-sales ratio inched higher to 1.37, equaling its highest level since June 2009. The rise reflected increases in each business sector. The merchant wholesale I/S ratio rose to 1.31, its highest level since early 2009. Retailers' I/S ratio gained to 1.47, equaling its high for the economic recovery. In the manufacturing sector, the I/S ratio rose to 1.35. It has moved roughly sideways all year, staying near the recovery high.

The manufacturing and trade data are in Haver's USECON database.