U.S. sales at wholesale rose faster as well as inventories

Inventory/sales ratio is still high, but sales growth appears somewhat solid.
Somewhat robust wholesale indicators signal upward potential for 3Q GDP in U.S.

Inventories at the wholesale level rose 0.5% during September (4.5% y/y) following a 0.3% August increase. The rise was paced by a 1.3% jump (8.4% y/y) in furniture and a 0.5% rise (12.8% y/y) in automotive inventories.

Nondurable goods inventories increased 1.9% (7.5% y/y). The gain reflected a 2.3% rise (14.4% y/y) in apparel but petroleum inventories eased 0.6% (-18.2% y/y).

Sales in the wholesale sector improved 0.5% (-3.6% y/y) after two months of decline. Motor vehicle sales jumped 2.3% (5.9% y/y) though furniture purchases were off 2.7% (+4.6% y/y). Machinery equipment sales improved 0.2% (-3.6% y/y).

Nondurable goods sales increased 0.3% (-6.1% y/y) as apparel sales gained 1.9% (6.3% y/y).

The inventory to sales ratio held steady at 1.31.

Wholesale Sector - NAICS Classification (%)	Sep	Aug	Jul	Y/Y	2014	2013	2012
Inventories	0.5	0.3	-0.3	4.5	6.7	4.1	6.6
Sales	0.5	-0.9	-0.3	-3.6	4.3	3.0	6.2
I/S Ratio	1.31	1.31	1.30	1.20 (Sep. '14)	1.20	1.18	1.16