Wholesale Trade Steady

Inventories in the wholesale sector were unchanged in the second estimate, down from a 0.2 percent build in the first estimate (which will be a small negative for second-quarter GDP revisions) and compared to a 0.4 percent build in May. Inventories may be steady but not sales which fell 0.3 percent in the wholesale sector during June after a 0.6 percent decline in May. Year-on-year, sales in June were down 0.2 percent versus a 7.6 percent rise in inventories which hints at a slowing inventory build ahead. Inventories of autos did fall 0.2 percent in June but were still up 17.4 percent on the year. This will likely be a negative for near-term auto production.