The advance report on wholesale inventories shows a decrease of 0.2 percent in November from October and down 0.3 percent in October from September. Inventories of wholesale durable goods are up 0.1 percent in November and flat in October. Nondurable goods inventories are down 0.7 percent in November after falling 0.9 percent in October. Inventories of nondurables likely reflect consumer demand for more perishable items during the early winter holidays, and durable inventory growth was restrained, also by consumer demand.

Wholesale inventories are expected to decrease 0.2 percent in the advance report for November that would follow a 0.4 percent draw in October.

Wholesale inventories measure the monthly dollar value of inventories held by merchant wholesalers and are tracked to gauge inventory change in quarterly GDP. 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 retail inventories and international trade in goods). Final monthly data for wholesale inventories are released about two weeks later with the Wholesale Trade report which also includes initial monthly data on wholesale sales.

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 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.