Wholesale Inventories Jump Above Estimates

Economic demand is strong and inventories are on the rise. Wholesale inventories jumped 0.8 percent in November which is one of the biggest builds of the last year and 1 tenth above the advance estimate. Yet further stocking looks likely given the strength of November sales at the wholesale sector which surged 1.5 percent following a 0.8 percent rise in October, a month when inventories fell 0.4 percent. The need for inventory build is underscored by the year-on-year rates where sales are far in front at 9.8 percent vs only 4.0 percent for inventories. The stock-to-sales ratio for the sector is on the decline, down to 1.24 in November vs 1.25 and 1.26 in the two prior months. Watch for November's total inventory tally with business inventories on Friday.

Recent History Of This Indicator:
Wholesale trade inventories are expected to rise 0.7 percent in line with advance data which showed a 0.7 percent build. Inventories in general, including at the wholesale level, have been on an orderly climb in response to strong demand.