U.S. Business Inventories Rise 0.5% in May
Summary
- Retail inventories up 0.6%, led by motor vehicles.
- Business sales flat in May as manufacturers’ shipments fell.
- Overall inventory/sales ratio unchanged for a fourth month.
Business inventories grew 0.5% in May (+1.6% y/y), up from 0.3% in April; the April amount was not noticeably revised. The Informa Global Markets survey had expected a 0.3% increase in May.
Retail inventories rose 0.6% in May (+5.0% y/y)) after an 0.8% increase in April, which was revised up marginally from 0.7% reported before. The overall May increase was concentrated in motor vehicles and parts, for which inventories increased 2.0% (+21.8% y/y) from April, when they had risen 1.9%. Inventories of building materials and garden supply stores rose 0.5% in May (-3.3% y/y); food store inventories were up 0.2% (-0.6% y/y) and clothing inventories rose 0.2% (-0.1% y/y). By contrast, inventories of furniture, electronics and appliances fell 0.7% (-7.4% y/y) in May and general merchandise store inventories edged down 0.1% (-2.4% y/y).
Manufacturing inventories rose 0.2% in May (+0.9% y/y) after edging upward 0.1% in April. Wholesale inventories increased 0.6% (-0.5% y/y) in May after rising 0.2% in April.
Total business sales were unchanged in May (+2.0% y/y) after increasing 0.2% in April. Manufacturers’ shipments fell 0.7% in May (+2.0% y/y) after surging 0.8% in April. Wholesale sales rose 0.4% in May (+1.5% y/y)) following a 0.2% increase in April. Retail sales rose 0.2% in May (+2.2% y/y) after decreasing 0.3% in April. The May increase was led by clothing stores and motor vehicles and parts.
The inventory/sales (I/S) ratio for total business was 1.37 in May for a fourth straight month. The ratio for manufacturers was 1.47 in May, up from 1.46 in April. For retailers, the ratio was 1.31 in May, up marginally from 1.30 in April, and for wholesalers, it was 1.35, unchanged from April.
The manufacturing and trade data are in Haver’s USECON database. The Informa Global Markets forecast is in the MMSAMER database.
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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