Wholesale inventories fell 0.2 percent in the second estimate for November from October, unrevised from the first estimate, in line with expectations. The decline largely reflected a 0.4 percent decrease in durable goods inventories with automotive down 2.2 percent on the month. October was revised to an unchanged reading from September, down from the rise of 0.2 percent reported previously.

Wholesale inventories rose 0.8 percent in November from a year ago. The wholesale inventory-sales ratio was at 1.33 in November versus 1.34 in October and 1.35 in November a year ago.

November details, month on month, show a 0.4 percent decrease for durable goods, led by the 2.2 percent drop in automotive and a 1.3 percent decline in computer equipment, partly offset by 0.8 percent rise in furniture and a 0.6 percent increase in lumber. There was a 0.2 percent increase for nondurable goods, led by a 1.9 percent uptick in groceries and 1.0 percent increases for both petroleum and alcohol, offset in part by a 4.5 percent plunge in farm products.

No change is expected from the flash reading of minus 0.2 percent.

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.