The second estimate for August wholesale inventories shows a 0.1 percent draw, unchanged from the first estimate and compared with a downwardly revised 0.3 percent draw in July. Inventories at the wholesale level have been falling in recent months and are down 1.0 percent on the year.

Inventories of durable goods were unchanged in the month as a 2.1 percent build for autos was offset by declines for electrical eqiupment, metals, and furniture. Inventories of nondurable goods fell 0.4 percent as a 1.9 percent build for petroleum was offset by declines for apparel, chemicals, and drugs.

Sales at the wholesale level rose 1.8 percent in August and included a price-inflated 8.3 percent rise for petroleum, a 2.9 percent rise for drugs, and a 1.5 percent rise for autos. On the year, wholesale sales were down 1.7 pecent in August.

Wholesale trade measures the dollar value of sales made and inventories held by merchant wholesalers. It is a component of business sales and inventories.

Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers a slower rate of growth that won't lead to inflationary pressures. Wholesale sales and inventory data give investors a chance to look below the surface of the visible consumer economy. Activity at the wholesale level can be a precursor for consumer trends. In particular, by looking at the ratio of inventories to sales, investors can see how fast production will grow in coming months. For example, if inventory growth lags sales growth, then manufacturers will need to boost production lest product shortages occur. On the other hand, if unintended inventory accumulation occurs (i.e. sales did not meet expectations), then production will probably have to slow while those inventories are worked down. In this manner, the inventory data provide a valuable forward-looking tool for tracking the economy.