Retail And Wholesale Inventories Rise

Retail inventories rose 0.5 percent in May following April's 0.6 percent rise. In other data released this morning, wholesale inventories rose an as-expected 0.4 percent in May following a revised 0.9 percent build in April while inventories of durable goods show builds in May and April of 0.5 and 0.4 percent. These are substantial builds that will support inventory growth in the second-quarter GDP report. Whether these builds are exceeding underlying demand is a separate question, one that will play out in the unfolding performance of second-quarter consumer demand and business spending.