Wholesale inventories on Friday rose +.8% MoM (consensus +.5%), but as sales rose an even stronger +2.7% MoM (the largest monthly gain in 4 years), causing the inventory to sales figure to drop to a record low of 1.07 months. Wholesalers account for about a quarter of all business stockpiles. Rising stockpiles were apparent at machinery, metal, clothing and farm product distributors. Auto stockpiles at wholesalers fell a large -.7% MoM. The slowdown in auto sales has businesses being very cautious on growth as the economy slows.
Durable goods inventories rose +.6% MoM and non-durable stockpiles rose +1.2% MoM. Non-durables include energy and food products. Part of the reason for the stronger rise in non-durable stockpiles was due to higher prices.
Over the past year, inventories have risen +6.4% YoY, with a substantial +15% YoY rise in non-durables. Groceries are up +7.5% YoY. Sales have risen a much larger +15% YoY, with ex-petroleum sales rising +10% YoY. Machinery and grocery sales have both risen 10-12% YoY, while petroleum sales have risen +64% YoY. Most of the energy rise has been due to higher prices rather than volumes.
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