Retail Inventories Unchanged, Wholesale Inventories Rise Higher-Than-Expected

Retail inventories were unchanged in August following, however, a steep 0.8 percent build in July. Sales at the retail sector in August, data released earlier in the month, proved moderate and may limit the sector's inventory build for September. Yet following only a small build in the second quarter, inventories overall (also including the wholesale and factory sectors) may offer a positive contribution, and a healthy one, to third-quarter GDP.

...meanwhile...

Inventories at the wholesale level rose a higher-than-expected 0.4 percent for the first estimate in August, this is up from a 0.2 percent build in July. Inventories at retailers were also reported this morning, at no change that follows, however, a steep build in July. Overall, inventories have been running on the lean side this year and whatever build that may be taking place in the third quarter is probably welcomed and a plus for employment and production.