Washington, DC, July 10, 2006--Wholesale inventories rose 0.8% in May while sales increased 1.6%, according to a Commerce Department report.
The inventory-to-sales ratio fell to a record-low 1.15 in May. The typical wholesaler has about 35 days of sales on hand.
The increase in inventories was slightly higher than the 0.6% forecast by economists. Inventories had increased a revised 1.3% in April, up from 0.9% originally estimated.
Inventories are up 7.8% in the past year. Sales are up 12.1% in the past year.
In May inventories of durable goods increased 0.8% while sales rose 2.6%. The inventory-to-sales ratio fell to 1.48 from 1.51 in April.
Automotive inventories fell 1.4%. Auto sales rose 3%.
Wholesale inventories of nondurable goods increased 0.9% in May while sales increased 0.7%. The inventory-to-sales ratio fell to a record-low 0.83 from 0.85.
Petroleum inventories rose 7.1% while sales increased 1.2%
