JUNE WHOLESALE INVENTORIES UP 1.1%
Wholesale Inventories rose 1.1% in June, following an upwardly revised 0.9% increase in May. The larger-than-expected build was mainly a result of the 8.3% boost in petroleum inventories, the largest monthly increase since December ‘07, following a 0.8% increase in May. Durable goods inventories were up 0.6% in June — with inventories of metals up 4.2% — while non-durable inventories were up 1.8%.
Wholesale Sales were up 2.8% in June, the most since March ‘04 and following a 2.2% increase the prior month, which was largely a result of gov’t stimulus checks. Also leading wholesale sales higher was a 12.7% increase in petroleum sales, the most since April ‘02, from an upwardly revised 9.9% increase in May. Wholesale petroelum sales are up a hefty 68% year-over-year thanks to the combination of higher energy prices and USD deterioration.
Wholesale durable goods sales were up 1.3% in June following a 0.2% increase in May, and non-durable sales were up 4.1% following a 4% rise prior. Wholesale auto sales were down 4.7% and wholesale apparel sales tanked 7.9%.
The inventory-to-sales ratio fell to 1.06 in June from 1.08 in May. The durable goods inventory-to-sales ratio was 1.46 in June and the similar non-durable goods measure was 0.74.