Wholesale Inventories Rise as Sales Increase

- Wholesale Inventories for May rose .8% versus estimates of a .5% increase and an upwardly revised 1.3% gain in April.

BOTTOM LINE: Inventories at US wholesalers rose more than expected in May, led by gains in business equipment and machinery and a jump in petroleum stockpiles, Bloomberg said. Sales rose 1.6% versus a 1.5% gain in April. The inventory-to-sales ratio dropped to a record low of 1.15 months. Sales of durable goods rose 2.6% versus a .2% increase in April. Inventories of metals rose 2.9% versus a 4.5% jump in April. I expect inventory rebuilding to add to economic growth over the intermediate-term as corporations gain confidence in the durability of the current expansion.