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.
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.
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