Highlights
Whole inventories rose 0.8 percent in May, well under a 1.6 percent rise in sales at the wholesale level and pushing down the stock-to-sales ratio 1 tenth to a record low of 1.08. Inventory build between durables and non-durables was roughly even, a contrast to sales where durables were down but with non-durables, reflecting price inflation, way up at 3.2 percent in the month. Petroleum inventories remain unusually low, down 1.0 percent in May vs. a 7.5 percent monthly rise in sales. The stocks-to-sales ratio for petroleum is at a record low of 0.24 -- a low that does not reflect high demand which in fact is on a year-on-year decline due to high prices. Low stocks of petroleum products, reflecting soft refinery production, are part of the reason that oil prices are so high.

Inventories will be an important factor for second-quarter GDP but the verdict is still out. Inventories at the nation's factories in May have already been reported, showing a 0.5 percent rise. Retail inventories will be released next week. Businesses have been cautious in keeping inventories down should economic growth slow, but mild accumulation appears to be necessary to meet demand.

2008 Release Schedule

Released On: 1/10 2/8 3/10 4/9 5/8 6/6 7/8 8/8 9/9 10/9 11/7 12/10 Released For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct