–Retail Auto Inventories Surge 1.2% On Sales Decline
–Retail Inventories Excl. Auto Up 0.8% On Gains In Every Category
–Business Sales Up 2.2% in March, Inventory/Sales Ratio At Record Low
By Kevin Kastner
WASHINGTON (MNI) – The value of business inventories rose 1.0% in
March, with the increase slightly larger than expected due to a 0.9%
rebound in retail inventories, data released Thursday morning by the
Commerce Department showed.
The 0.9% rise in retail inventories was due in part to 1.2%
increase in motor vehicle and parts inventories during the month when
motor vehicle sales fell 0.7%.
The remaining retail inventories categories combined for a 0.8%
rise, with increases in every category. Furniture inventories and
building materials inventories posted the largest retail gains outside
of motor vehicles.
The rise in overall retail inventories added to the already
reported 1.1% gains in both factory inventories and wholesale
inventories for March.
Overall business inventories would have still been up 1.0% in March
if the surged in retail motor vehicle inventories was excluded, based on
a Market News International calculation.
Meanwhile, business sales jumped 2.2% in March on sharp increases
in manufacturing and wholesale sales, and a modest increase in retail
sales.
Sales were up sharply from a year ago, running 11.8% ahead of their
March 2010 pace before seasonal adjustment and 11.0% after seasonal
adjustment.
At the same time, inventories were 10.1% above their year-ago
levels before seasonal adjustment and up 9.7% after seasonal adjustment.
In March, the inventory-to-sales ratio fell to a record low 1.23
from the 1.24 ratio posted in February, and the 1.25 ratio in March
2010.
With monthly sales gains still slightly outpacing inventory growth,
the data, especially the inventory/sales ratio, suggest that businesses
are cautiously holding the line against overstocking despite signs of
sales improvement.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
