Perhaps there will be an inventory build for the quarter after all because the build in wholesale inventories is not matched by reported sales.

Wholesale Inventories

The Census Bureau revised April from -0.5% to -0.4%. Thus, for the quarter so far, inventories are flat. Sales are another matter.

Sales and Inventories by Category

Petroleum is the big driver for declining nondurable goods sales.

Auto sales represent channel stuffing by manufacturers to dealers, accounting for the big boost in automotive sales in April.

Inventory to Sales Ratio

Mike “Mish” Shedlock