US wholesale inventories increased in March

According to Reuters, wholesale inventories within the United States increased in March as sales were flat.  On Tuesday, the Commerce Department reported a wholesale inventories rise of 0.2 percent after the 0.3 percent increase in February as the department reiterated wholesale inventories miss of 0.1 percent for March.

Auto inventories had increased 1.9 percent as well as wholesale stocks of electrical goods rose 2.3 percent which is the biggest gain since January 2015.  Although inventories had contributed to GDP growth for two straight quarters, inventory investment dropped 0.93 percentage points from GDP in the first quarter that aided in helping the economy stay at a 0.7 percent annualized growth pace. 

At March's sales pace it would take wholesalers 1.28 months to clear shelves, unchanged from February. The ratio has declined from 1.36 months in January and February last year, which was the highest since January 2009.

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