Retail And Wholesale Inventories Jump

In what may be a bit of an unwanted build, retail inventories jumped 0.8 percent in January with the increase concentrated in motor vehicles where final sales have been weak. The retail sector, after a strong run, has been showing some softness though the health of the jobs market together with enormous strength in consumer confidence do hint at better sales ahead. This build together with a 0.7 percent rise in wholesale inventories and a 0.3 percent rise in durable goods inventories (both also released this morning) mark a fast start for first-quarter inventories.

...meanwhile...

Wholesale inventories rose a strong 0.7 percent in January to easily top Econoday's high forecast. This together with a 0.8 percent build in retail inventories and a 0.3 percent rise in durable goods inventories (both also released this morning) mark an early start for first-quarter inventories. Note that inventory build during times of economic strength points to gains for production and employment.

Recent History Of This Indicator:
Wholesale trade inventories are expected to rise 0.3 percent in January after posting strong builds of 0.4 percent and 0.6 percent in the prior two months.