DATA SNAP: US Jun Inventories Rise At Rate Expected

DATA SNAP: US Jun Inventories Rise At Rate Expected
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Business Inventories ! !
Jun May ! Inventories: !
Total Inventories +0.4% +0.5% ! Consensus: +0.4% !
Inv/Sales Ratio 1.27 1.26 ! Actual: +0.4% !
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U.S. businesses accumulated inventories during June at the rate Wall Street expected, with stockpiles rising at car dealers, furniture stores, and food retailers.

Inventories increased by 0.4% to a seasonally adjusted $1.412 trillion, after rising in May an unrevised 0.5%, the Commerce Department said Monday.

Wall Street was looking for stockpiles to move 0.4% higher during June.

Business sales decreased by 0.3% during June, going down to $1.111 trillion. Sales rose in May by an unrevised 1.3%.

The inventory-to-sales ratio rose to 1.27 in June from an unrevised 1.26 in May, Commerce said. The gauge indicates how well firms are matching supply with demand. It measures how long in months a firm could sell all current inventory.

Year over year, inventories grew by 3.6% since June 2006; sales climbed 3.3%.

June manufacturing sector stockpiles of goods rose 0.3% after increasing 0.4% in May. U.S. wholesalers' inventories rose 0.5% after increasing 0.5% in May.

Retailers' stocks of goods rose 0.5% after increasing 0.7% in May. Auto dealer inventories rose 1.0% after increasing 0.6% in May.

Excluding the auto component in Monday's inventory report, other retail stocks rose 0.2% in June after increasing 0.7% in May. Inventories rose by 0.2% at general merchandise stores; 0.6% at food and beverage stores; 0.6% at furniture outlets; and 0.2% at building materials, garden equipment and supplies stores. Stockpiles fell by 0.2% at clothing stores.