Global| Jun 10 2014U.S. Wholesale Sales and Inventories Continue to Rise
by:Tom Moeller
|in:Economy in Brief
Summary
Wholesale sales increased 1.3% (7.8% y/y) during April following March's 1.6% gain, last month set at 1.4%. Durable goods sales gained 1.7% (6.0% y/y) led by a 3.1% jump (6.3% y/y) in furniture sales. Motor vehicle & parts sales [...]
Wholesale sales increased 1.3% (7.8% y/y) during
April following March's 1.6% gain, last month set at 1.4%. Durable goods
sales gained 1.7% (6.0% y/y) led by a 3.1% jump (6.3% y/y) in furniture
sales. Motor vehicle & parts sales followed with a 2.9% gain (5.1%
y/y) and professional & computer equipment sales increased 2.4% (6.7%
y/y). Electrical equipment sales gained 2.3% (8.0% y/y but metals &
minerals sales fell 1.9% (+3.0% y/y). Nondurable
goods sales increased 1.0% (9.4% y/y) as drugs & druggists' sundries
sales rose 3.0% (13.3% y/y). Grocery & related product sales rose 1.2%
(10.2% y/y) and chemical sales gained 1.1% (8.3% y/y). Apparel sales
retreated 1.6% (+13.3% y/y) and petroleum sales eased 0.1% (+14.6%
y/y).
Inventories at the wholesale level gained 1.1% (6.7% y/y) during April, the same as a little-revised 1.1% March gain. The strength owed to a 1.4% rise (6.8% y/y) in the nondurable goods sector. That was driven by a 2.6% jump (22.8% y/y) in drugs and druggist sundries and a 2.3% rise (5.1% y/y) in paper products. Apparel products inventories rose 1.0% (7.3% y/y) and chemical inventories gained 0.8% (7.6% y/y). Petroleum inventories rose 0.4% (-3.3% y/y). Durable goods inventories increased 0.9% (6.6% y/y) as electrical equipment inventories gained 2.8% (4.2% y/y). Metal & mineral inventories rose 2.5% (3.3% y/y) but furniture inventories rose a lesser 0.7% (7.5% y/y).
The wholesale sector's inventory-to-sales ratio held m/m at 1.18 but it's risen from 1.16 at year-end. In the durable goods sector, the I/S ratio declined to 1.57 versus its recent 1.60 high. The machinery ratio fell to 2.45 and it was firm in furniture at 1.62. In the nondurables sector, the I/S ratio of 0.85 was down slightly versus last year. The 2.00 ratio in apparel contrasted with 0.31 in petroleum.
The wholesale trade figures are available in Haver's USECON database.
| Wholesale Sector - NAICS Classification (%) | Apr | Mar | Feb | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Inventories | 1.1 | 1.1 | 0.7 | 6.7 | 4.0 | 5.5 | 9.4 |
| Sales | 1.3 | 1.6 | 0.9 | 7.8 | 4.3 | 4.8 | 12.4 |
| I/S Ratio | 1.18 | 1.18 | 1.19 | 1.19 (Apr.'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.
