Wholesale inventories rose 0.2 percent in the second estimate for July, down 0.1 percentage point from the first estimate of up 0.3 percent, and following a revised flat showing in June. Wholesale inventories rose 0.4 percent from a year ago. The inventory-sales ratio was pretty flat at 1.35 in July versus 1.36 in June and 1.38 a year ago.

July details, month on month, show a 0.1 percent increase for durable goods, where a 1.0 percent rise for autos was a big mover along with professional equipment, up 1.3 percent, and computer equipment, up 1.4 percent. In the negative column for durables inventories were metals, miscellanous durables, and lumber. There was a 0.5 percent rise for nondurable goods inventories, led by drugs, up 2.5 percent, and miscellaneous nondurables, up 0.8 percent, offset somewhat by declines in petroleum and chemicals.

A first look at wholesale sales in July shows a 1.1 percent rebound month on month following a 0.3 percent decline in June. Sales of durables rose by 0.5 percent in July, led by furniture, professional equipment and computer equipment. Wholesale sales of nondurables jumped 1.6 percent after dropping 1.1 percent in June. The sales recovery reflected sharp increases for apparel, petroleum, drugs, and miscellaneous nondurable products.

The second estimate for July wholesale inventories is for a 0.3 percent increase that would be unchanged from the first estimate.

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.