April US business inventory data

  • The March reading was +0.4% (revised to +0.3%)
  • Business sales +0.9% vs +0.2% prior (largest since Feb 2014)
  • Inventory-to-sales ratio 1.40 months vs 1.41 months prior
  • Inventories ex-autos -0.2% (largest drop in nearly a year)

The small rise in inventories will be a small hit to GDP estimates but the jump in sales will boost growth and inventories in May, June and beyond.

Inventories have been a drag on growth for the past three quarters but still remain relatively high.

Business inventories: