Wholesale Inventories Jump

Inventories at the wholesale jumped a very strong 1.0 percent in August following a sizable 0.6 percent build in July. These results will be solid positives for third-quarter GDP and will help offset the sharp widening underway in the nation's trade deficit. The jump in August lifts the year-on-year build to 5.3 percent which, however, is still well below sales in the wholesale sector which are up a very sharp 9.2 percent. There is no danger of unwanted inventory overhang as wholesalers appear to be struggling to keep up with demand.