Wholesale Trade Report Hints At Future Growth

Inventories are getting off to a slow start in the fourth quarter as those at the wholesale level fell a sizable 0.5 percent in October. The draw reflects strong demand for autos where inventories fell 0.7 percent for a second straight month. Today's wholesale draw looks to outmatch a preliminary 0.1 percent build in factory inventories and a previously released 0.1 percent draw in retail inventories. Declining inventories are a negative for GDP but are in fact very welcome during a time of solid expansion, pointing to the need for restocking and gains for future production and employment.

Recent History Of This Indicator:
Wholesale trade inventories are expected to fall 0.1 percent following a decline in October's advance reading. Wholesale inventories had been climbing sharply in prior months.