Welcome!

Thursday, June 9, 2016

Wholesale Inventories Rise Sharply

Wholesales inventories rose a very sharp 0.6 percent in April in a result that will lift early estimates for second-quarter GDP. And the build (risking a double negative) is not unwanted as sales in the wholesale sector rose a very strong 1.0 percent. The mix actually points to a leaner level of inventories with the stock-to-sales ratio down to 1.35 from 1.36.

Sales of autos were especially strong in the wholesale sector during April, up 1.6 percent and making for a 0.4 percent decline in inventories in a draw that will, based on solid unit sales data for May, have to be replenished.

This report, like jobless claims earlier today, is a surprise on the upside, contrasting with what has been a recent downside run of economic data.


Recent History Of This Indicator:
Inventories have been flat this year reflecting destocking efforts in the face of soft demand. Forecasters see wholesale inventories little changed in April, at a consensus of plus 0.1 percent. Inventory builds are not wanted during times of slow economic growth, putting future production and employment at risk.

No comments:

Post a Comment

Legal Shield

Pre-Paid Legal