Manufacturers & Trade Inventories & Sales
Contents
Manufacturing and Trade Inventories and Sales
Manufacturing and Trade Inventories and Sales is a key economic indicator released monthly by the U.S. Census Bureau. This report provides a broad and timely measurement of changes in total business activities across three major sectors of the U.S. economy:
| • | Manufacturing: The production of goods. |
| • | Wholesale Trade: The distribution of goods from manufacturers to retailers. |
| • | Retail Trade: The sale of goods to the public. |
This report is the only source of monthly data on the combined activities of these three sectors.
Report Components
The data in the report is compiled from three separate surveys:
| • | The Monthly Retail Trade Survey |
| • | The Monthly Wholesale Trade Survey |
| • | The Manufacturers' Shipments, Inventories, and Orders Survey |
The report provides two primary metrics, which are often used in conjunction with each other to gauge the health of the economy:
| • | Inventories: The value of unsold goods at the end of the month held by manufacturers, wholesalers, and retailers. An increase in inventories relative to sales can indicate a slowdown in consumer demand. |
| • | Sales: The combined value of sales (from retailers and wholesalers) and shipments (from manufacturers). |
A crucial data point derived from the report is the Inventories-to-Sales Ratio. A rising ratio suggests that inventories are building up faster than they are selling, which could lead to a future slowdown in production. Conversely, a falling ratio indicates that businesses are selling goods faster than they are accumulating them, which may prompt an increase in manufacturing and production to meet demand.
Comparing MTIS to M3
The key difference is that Manufacturers & Trade Inventories & Sales (MTIS) is a broader, aggregate report, while Manufacturers' Shipments, Inventories and Orders (M3) is a more detailed report focused specifically on the manufacturing sector.
Here is a breakdown of how they compare:
Manufacturers & Trade Inventories & Sales (MTIS)
| • | Scope: This is a comprehensive, aggregate report that combines data from three key sectors of the economy: |
| 1. | Manufacturing |
| 2. | Wholesale trade |
| 3. | Retail trade |
| • | Purpose: The MTIS report provides a big-picture view of the overall health of the supply chain. It helps economists, analysts, and policymakers understand the total amount of goods held by businesses and the pace at which those goods are being sold. |
| • | Key Data Points: The main metrics in this report are: |
| 1. | Total Business Inventories: The combined value of inventories held by all three sectors. |
| 2. | Total Business Sales: The combined value of sales (or shipments for manufacturers) for all three sectors. |
| 3. | Inventory-to-Sales Ratio: A crucial metric that shows how many months of inventory are on hand relative to the current rate of sales. A rising ratio can signal slowing demand or overproduction, while a falling ratio may indicate strong demand and a need for increased production. |
Manufacturers' Shipments, Inventories and Orders (M3)
| • | Scope: This report focuses exclusively on the manufacturing sector. It is one of the three surveys used to compile the broader MTIS report. |
| • | Purpose: The M3 report provides a more granular look at the manufacturing industry. It is a key indicator of industrial activity and future production commitments. |
| • | Key Data Points: The M3 report provides detailed information on: |
| o | Shipments: The value of goods delivered by manufacturers. |
| o | Inventories: The value of stocks held by manufacturers, broken down by stage of fabrication (raw materials, work-in-process, and finished goods). |
| o | New Orders: The value of new orders received during the month, which is a leading indicator of future manufacturing activity. |
| o | Unfilled Orders: The backlog of orders that have been received but not yet shipped. |
Comparison Summary
Feature |
Manufacturers & Trade Inventories & Sales (MTIS) |
Manufacturers' Shipments, Inventories and Orders (M3) |
Sectors Included |
Manufacturing, Wholesale Trade, Retail Trade |
Only Manufacturing |
Level of Detail |
Broad, aggregate data for the entire supply chain |
Detailed data specifically for the manufacturing sector |
Key Metrics |
Total Business Inventories, Total Business Sales, and Inventory-to-Sales Ratio |
Shipments, Inventories, New Orders, Unfilled Orders |
Main Use Case |
Understanding the overall health of the supply chain and business cycle |
Analyzing the performance and future outlook of the manufacturing industry |
Relationship |
The M3 survey is one of the three data sources used to create the MTIS report. |
The M3 data is a component of the MTIS data. |