The wholesale inventories in June rose 0.7% more than expected by economists. The text of the report from the U.S. Census Bureau is reported below.

Sales

The U.S. Census Bureau announced today that June 2005 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $297.3 billion, up 0.6 percent from the revised May level and were up 7.8 percent from the June 2004 level.

The May preliminary estimate was revised upward $0.1 billion. June sales of durable goods increased 0.3 percent from last month and were up 6.4 percent from a year ago. June sales of nondurable goods increased 0.8 percent from last month and were up 9.2 percent from last year. Sales of petroleum and petroleum products increased 3.5 percent from last month and sales of drugs and druggists’ sundries increased 2.1 percent.

Inventories

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $353.1 billion at the end of June, up 0.7 percent from last month and were up 10.2 percent from a year ago.

The May preliminary estimate was revised upward $0.6 billion or 0.2 percent. End-of-month inventories of durable goods increased 0.9 percent from May and were up 11.6 percent from last June.

Inventories of motor vehicle and motor vehicle parts and supplies increased 3.1 percent and inventories of machinery, equipment, and supplies were up 1.5 percent. End-of-month inventories of nondurable goods increased 0.3 percent from May and were up 8.0 percent compared to last June.

Inventories of drugs and druggists’ sundries decreased 0.8 percent from last month.

Inventories/Sales Ratio

The June inventories/sales ratio for merchant wholesalers, except manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.19. The June 2004 ratio was 1.16.