Wholesale inventories rose more than expected in April (up 0.6% MoM vs 0.1% exp) - the biggest monthly jump in 10 months - but sales disappointed (rising only 1.0% versus a 1.1% expectation). This sales growth topping inventory growth is a positive but for context the inventory-to-sales ratio remains at 1.35x - the highest level ex-Lehman on record.
They just keep building inventories... even as sales remain lower YoY...
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The absolute "wholesale trade gap" did drop modestly...
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While inventory-to-sales ratio did drop modestly, we remind 'investors' that the only time it was higher than this was in the immediate aftermath of Lehman...
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