The package eliminates a $1 billion tax on retail inventories that offended Republicans, but does not replace it with anything, leaving the House-Senate conference to decide how to raise the money.

March's rise in inventories was led by a gain of five-tenths of 1 percent at manufacturing plants, with retail inventories up four-tenths of 1 percent.

He added that retail inventories would rise 5 to 8 percent, or more than sales in real terms, and that this could mean a breakout of retail price cutting.

Excluding autos, retail inventories were up only three-tenths of 1 percent.

"Excluding cars, retail inventories were up only two-tenths of 1 percent," he added.

"In particular, with retail inventories on the lean side there shouldn't be a lot of discounting during the upcoming holiday season," he said.

Brands and licenses are more important, as is the use of television advertising, managing retail inventories and managing a shrinking retail base.

At the same time, retail inventories dropped 1.4 percent after falling 1.2 percent in February.

"We have enough retail inventory to allow our dealers to keep the sales momentum going in July," Mr. Zarrella said.

Yesterday's inventory data, notably the decline in retail inventories, excluding autos, is viewed as refuting talk of collapsing retail sales and the threat of a recession.