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E.J. Antoni reports that manufacturing and trade inventories increased by 0.3% month-over-month in May and by 3.1% year-over-year. Sales posted stronger growth, rising 2.1% month-over-month and 11.9% year-over-year.
Antoni observes that most of the inventory growth was attributed to inflation and that inventories are continuing to lean out relative to sales.
Antoni recently reported that U.S. import prices rose 0.3% in June, driven by a 44.1% annual increase in fuel costs, which contributed to a 7.1% year-over-year gain in import prices. In a separate note, he highlighted that ADP private payroll growth slowed to an average of 19,750 per week for the period ending June 27 as job gains moderated. These updates follow sustained movement in inventories and sales figures.