Wholesale sales rise 2.5 times faster than inventories in May

May wholesale inventories rose +.5% MoM (consensus +.4%), and sales jumped +1.3% MoM in May. Inventories to sales fell to a record low of 1.11 months, based on the current sales pace, as stocks continue to be depleted to lean levels. Wholesale inventories represent about 25% of total business inventories. This is likely to encourage further production, especially for computer and furniture wholesalers which saw the largest gains in sales (almost +4% MoM) during May. Surprisingly, furniture inventories also hit a record low last month. Sales of non-durable goods rose +2.9% MoM. Auto sales saw a huge -5.3% drop in sales, which caused inventories to rise +1.3% MoM in May.