| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.2% | 0.2% to 0.6% | 0.2% | 0.6% | 0.5% |
Highlights
Wholesale inventories rose 0.2 percent in the second estimate for June, unchanged from the first estimate and down from a revised 0.5 percent build in May. June details are split between a 0.1 percent decline for durable goods, where a 0.8 percent rise for autos was offset by declines for other components including computer equipment and metals, and a 0.7 percent rise for nondurable goods that was led by petroleum as well as paper and groceries.
A first look at wholesale sales in June shows a 0.6 percent decline following a 0.3 percent rise in May. Sales of durables rose by 0.4 percent in June led by furniture, hardware, and lumber, while sales of nondurables fell 1.6 percent reflecting sharp declines for petroleum and farm products.
A first look at wholesale sales in June shows a 0.6 percent decline following a 0.3 percent rise in May. Sales of durables rose by 0.4 percent in June led by furniture, hardware, and lumber, while sales of nondurables fell 1.6 percent reflecting sharp declines for petroleum and farm products.
Market Consensus Before Announcement
The second estimate for June wholesale inventories is for a 0.2 percent build that would be unchanged from the first estimate.
Definition
Wholesale trade measures the dollar value of sales made and inventories held by merchant wholesalers. It is a component of business sales and inventories.
Description
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.
