Wholesale sales numbers bounced a hefty 0.7% but the internals look pretty weak.

Autos were down again with auto inventories up.

Durable goods sales declined 0.2% and apparel dipped 5.9%. The inventory-to-sales figure remained unchanged.

Let’s dive into the Census Department report on Monthly Wholesale Inventories for a closer look.

Wholesale Sales

Wholesale Sales 2016-05-10

Key Sales Numbers

  • Sales jumped 0.7% jump due to a 13.5% rise in petroleum. Year-over-year, petroleum is down 23.2%.
  • Automotive sales slid 0.7%, down 0.9% year-over year.
  • Apparel dove 5.9% this month, down 6.2% year-over-year.


Wholesale Sales 2016-05-10A

Inventory-to-Sales Ratio

Wholesale Sales 2016-05-10B

Despite the increase in sales, the inventory-to-sales ratio remained a problematic-looking 1.36.

Individual components such as autos, hardware, apparel, and machinery look worse.

This was not a good report.

Mike “Mish” Shedlock