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Thursday, October 18, 2018 9:12:09 AM EDT




Business Inventories
Briefing.com Updated 15-Oct-18 10:23AM ET

Total business inventories increased 0.5% in August, in-line with the Briefing.com consensus estimate, after increasing an upwardly revised 0.7% (from 0.6%) in July.

Total business sales also increased 0.5% after increasing 0.2% in July.

Manufacturers' and wholesalers' inventories were known ahead of time, so the missing variable was the report on retailers' inventories, which increased 0.7% after increasing 0.6% in July.

Retailers' inventories were up in all major categories, led by a 1.8% increase in motor vehicle and parts dealers inventories. Inventories at department stores, which are a subset of general merchandise stores, declined 0.2%.

On a year-over-year basis, total business inventories were up 4.2% while total business sales were up 7.8%.

The inventories-to-sales ratio held steady at 1.34 and was down from 1.39 in the same period a year ago.

The key takeaway from the report is that business sales continued to outpace inventory growth year-over-year, which is a favorable trend that carries the potential to lead to a better pricing environment for businesses.
 
AUGJULJUNMAYAPR
Inventories0.5%0.7%0.1%0.3%0.3%
Manufacturers-0.1%0.9%0.2%0.2%0.4%
Retailers0.7%0.6%-0.1%0.4%0.4%
Wholesalers1.0%0.6%0.1%0.3%0.1%
Sales0.5%0.2%0.3%1.3%0.6%
Manufacturers0.5%0.0%1.0%0.6%0.1%
Retailers0.0%0.5%0.1%1.0%0.4%
Wholesalers0.8%0.2%-0.2%2.1%1.4%
Inventory/Sales1.341.341.331.341.35
Manufacturers1.341.351.341.351.35
Retailers1.441.431.431.431.44
Wholesalers1.261.261.251.251.29