Wholesale inventories rose 0.8 percent in the second estimate for January from December, up slightly from the first estimate showing an increase of 0.7 percent. There were gains in both durable and nondurable goods. December was revised to show a decline of 0.4 percent from November compared with the decrease of 0.5 percent reported previously.

Wholesale inventories were up 1.2 percent from a year ago. The wholesale inventory-sales ratio was at 1.33 in January versus 1.30 in December and 1.36 in January a year ago.

January details, month on month, show a 0.9 percent increase for wholesale inventories of durable goods, led by a 4.5 percent increase in computer equipment, a 1.8 percent increase in metals and a 1.8 percent increase in professional equipment. Auto inventories declined 0.2 percent.

Meanwhile, there was also a 0.7 percent increase for nondurable goods, led by a 3.7 percent increase in farm products, a 1.7 percent rise in miscellaneous nondurables and a 0.9 percent rise in groceries.

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.