Ending a run of builds, retail inventories were unchanged in October following a downward revised 0.4 percent rise in September. Motor vehicles at dealers have been lifting retail inventories and continued to do so in October, rising 2.0 percent on the month on top of September's 2.4 percent increase. Excluding vehicles, retail inventories in October fell 0.9 percent. Total inventories in October compared to October last year were up 5.4 percent, split between a 23.2 percent rise for vehicles and a 0.8 percent draw excluding vehicles.

October's results together with a 0.2 percent draw for wholesale inventories get inventories off to a slow start for fourth quarter GDP.

Retail inventories measure the monthly dollar value of inventories held by retailers. The advance report is released late in the month for the following month and is part of the Monthly Advance Economic Indicators report (which also includes data on wholesale inventories and international trade in goods). Final monthly data for retail inventories are released about two weeks later with the Business Sales and Inventories report.

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. Retail inventory data give investors a chance to look below the surface of the visible economy, especially for unwanted build. If inventories are growing too fast relative to economic growth, then both production and employment will probably have to slow while those inventories are worked down.