The Commerce Department reported that wholesale inventories rose at the end of May, but slightly smaller than expected. Overall, the latest update indicates that investment in inventories probably will not support economic growth in the second quarter.
According to the report, seasonally adjusted inventories in the warehouses of wholesale trade increased by 0.1% in May, reaching $ 586.2 billion. Analysts expected an increase of 0.2%. Meanwhile, the index for April was revised up to + 0.7% from + 0.6%. Compared to May 2015 stocks increased by 0.5%.
Inventories of computers and computer peripheral equipment and software rose by 1.9% compared to the previous month, while stockpiles of motor vehicles and automotive parts decreased by 1.9%. Stocks of non-durable goods rose by 0.2% over the month and by 5.1% y/y.
Inventories are a key component of gross domestic product changes. Component of wholesale inventories, which goes into the calculation of GDP – excluding cars – increased by 0.4% in May.
Wholesale sales of $ 435.5 billion., An increase of 0.5% compared to April. However, sales fell by 2.5% in annual terms.
Also, the Ministry of Commerce said that the ratio of stocks to sales ratio was 1.35 months in May as compared to 1.36 months in April. The ratio was at 1.31 months in May 2015.
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