--US May business inventories unchanged; sales +1.1%
--US May business sales increase biggest since March 2000
--US May inventory/sales ratio at 1.42; April at 1.44
--US May retailer inventories +0.4%; autos +0.5%

By Simon Kennedy
Washington, July 16 (BridgeNews) - Despite a rebound in sales, U.S. business inventories were unchanged in May, the Commerce Department reported Monday. The steady rate of inventories at factories, wholesalers and retailers was close to the consensus estimate for a 0.1% drop. However, business sales rose 1.1%, the first increase since December and the steepest since March 2000.
The inventory-to-sales ratio slipped to 1.42, the lowest since December, from 1.44 level in April.
According to Commerce, inventories at retailers were up 0.4%. In a survey of 20 economists by BridgeNews, the spread of estimates for the April business inventories ranged from down 0.3% to up 0.7%. In April, inventories fell 0.2%, as firms unwound bloated stockpiles amid falling demand.
Many analysts believe the U.S. economy could perform better in coming months once inventories are brought back into balance with demand. The U.S. economy only grew at an annual rate of 1.2% in the first quarter, and is unlikely to accelerate in the second quarter.
The retail inventory figure provides the final snapshot of U.S. inventory activity for the month. As previously reported, factory inventories fell 0.3%, while wholesale inventories climbed 0.2%.

RETAIL INVENTORY LEVELS
In the retail sector, automotive stocks rose 0.5%, after having been reported down a revised 0.1% in April.
Excluding autos, retail inventories were up 0.3%.

STOCK-TO-SALES RATIO
Retailers' inventories/sales ratio was unchanged at 1.57 in May. End Copyright 2001 Bridge Information Systems Inc. All rights reserved.