Wholesale sales declined 0.5% to $61.4 billion in June following eight consecutive monthly increases. Declines were recorded in five of seven subsectors, led by the food, beverage and tobacco subsector and the motor vehicle and parts subsector.
In volume terms, wholesale sales decreased 0.7% from May to June.
In the second quarter of 2017, current dollar wholesale sales increased 2.5% while constant dollar sales increased 1.7%. For both current and constant dollars, the increase in sales in this quarter was the fifth consecutive quarterly increase.
Lower sales in five subsectors
In dollar terms, the food, beverage and tobacco subsector reported the largest decline in June, as sales decreased 1.0% to $11.9 billion. This was mainly due to lower sales in the food industry, which decreased 1.1% and offset most of the 1.2% gain observed in May. For the subsector, June's decline was the first in five months.
Sales in the motor vehicle and parts subsector dropped 1.0% to $11.4 billion on weaker sales in the motor vehicle industry (-1.7%). The decline in June partially offset the gains in May for both the subsector (+1.3%) and the industry (+1.8%). Manufacturing sales of motor vehicles, as well as imports and exports of motor vehicles and parts, also declined in June.
The wholesalers in the machinery, equipment and supplies subsector posted a 0.6% decrease in June, with sales at $12.2 billion. This was the second decline in nine months for the subsector. Higher sales in the computer and communications equipment and supplies industry (+8.0%) were more than offset by lower sales in the other three industries, led by the farm, lawn and garden machinery and equipment industry (-14.9%).
The farm product subsector (-5.7% to $748 million) also recorded a decline in June.
Sales in the building material and supplies subsector remained almost unchanged at $8.5 billion.
Sales in both the miscellaneous subsector (+0.3% to $8.1 billion) and the personal and household goods subsector (+0.3% to $8.5 billion) edged up in June.
