by Mish

Wholesalers held back inventory growth in May, up only 0.1 percent and well under a 0.5 percent rise in sales at the wholesale level. The stock-to-sales ratio is down one notch to 1.35 from 1.36.
Inventories of two very large components — drugs and autos — fell sharply, making for leaner inventories relative to sales for both. In contrast, wholesale inventories of farm products have been on a sharp climb at the same time that sales have been falling, an unfavorable mix that is lifting the stock-to-sales ratio sharply, to 1.56 vs 1.46 in April and 1.30 in March.
But in general, inventories have been held successfully in check in line against no more than moderate rates of sales growth. Business inventories will be released Friday and will combine this report together with factory inventories, which slipped 0.1 percent in May, and yet-to-be released data on retail inventories.

Alleged Success

Inquiring minds are no doubt interest to see the success noted by Bloomberg.

Here’s what success looks like, produced from Census Department Data.

Motor Vehicles Inventory-to-Sales Ratio

RECOMMENDED ARTICLES

Image placeholder title

Durable Goods Inventory-to-Sales Ratio

Image placeholder title

Apparel Inventory-to-Sales Ratio

Image placeholder title

Mike “Mish” Shedlock

Wholesale Sales and Inventories Jump: Drugs, Groceries Lead the Way

Wholesale inventories in June rose 0.7% vs a Bloomberg Econoday consensus of 0.6%.

Wholesale Trade Inventories Decline; Revisions Announced; First Quarter GDP Troubles Brewing

According to the Census Department’s Monthly Wholesale Trade Report, inventories declined 0.2% in January.

Inventory to Sales Ratios: What’s Really Going On?

On November 15, the Census Bureau released its monthly report on Manufacturing and Trade Inventories and Sales. Despite the fact that is it mid-November, we are just now getting data for September.

Wholesale Inventories Crash, Led by Autos

Wholesale inventories plunged 5% in the Census Bureau Wholesale Trade Report for February, released today.

Wholesale Inventories Flat, Inventory-to-Sales Ratio Shows Hurricane Impacts

The Census Bureau reported wholesale inventories were flat in October. The bureau revised September from +0.7% to +0.6%. Hurricane impacts distorted the numbers, as well as mainstream media analysis of the numbers.

Wholesale and Retail Inventories Rise

Census bureau reports show wholesale and retail inventories jumped in November.

Wholesale Inventory Build Continues as Retail Sales Flounder

Wholesale inventories rose 1.0% nearly matching the consensus 1.1% estimate.

Wholesale Sales -0.5% Inventories +0.4%

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 Up 0.4 Percent: Spotlight on Autos

Wholesale inventories were up 0.4% in December vs expectations of a 0.2% rise. Revisions knocked November lower.