Wholesale Inventories Decline 0.3% in May

Wholesale inventories declined 0.3% in May, the Commerce Department reported Wednesday, reflecting declines in stockpiles of automobiles, machinery and electrical equipment.

Wholesale sales fell 0.5%, after decreasing 2.5% the month before. Wholesale inventories also declined 0.3% in April.

A decline in inventories is important for trucking companies because if businesses begin to see their shelf stocks decline, they will be forced to have more goods manufactured and delivered.

However, analysts told Bloomberg that even though inventories are very low, it is unlikely there will be a significant build up of inventories until sales strength for several consecutive months.

Economists had forecast a 0.2% rise in wholesale inventories, Bloomberg said.

Relative to sales, wholesale inventories were at 1.24 months' supply in May, the same as in April and close to a record-low 1.21 months' worth in March.

Inventories of durable goods at wholesalers, which include computers, hardware and lumber, fell 0.3% in May, Commerce said.

tockpiles of imported vehicles declined 0.8% in May, while machinery inventories fell 0.3%. Inventories of appliances, power equipment and other electrical gear dropped 1.3%.