| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.5% | 0.5% to 0.6% | 0.4% | 0.3% | 0.5% |
Highlights
Wholesale inventories are up 0.4 percent in the second estimate for March from February, revised from the first estimate showing an increase of 0.5 percent, just below the Econoday consensus forecast of an unrevised increase of 0.5 percent. There were gains in both durable and nondurable goods, with durables outperforming. February was revised to show a rise of 0.5 percent from January from an increase of 0.3 percent previously reported.
Wholesale inventories are up 2.2 percent from a year ago. The wholesale inventory-sales ratio is at 1.30 in March versus 1.30 in February and 1.35 in March a year ago.
March details, month on month, show a 0.6 percent increase for wholesale inventories of durable goods, led by furniture, hardware and autos. Meanwhile, there was a 0.1 percent increase for nondurable goods, led by chemicals and drugs. Rising durable inventoried presumably reflect stocking up ahead of tariff-related price increases for imported goods.
Wholesale inventories are up 2.2 percent from a year ago. The wholesale inventory-sales ratio is at 1.30 in March versus 1.30 in February and 1.35 in March a year ago.
March details, month on month, show a 0.6 percent increase for wholesale inventories of durable goods, led by furniture, hardware and autos. Meanwhile, there was a 0.1 percent increase for nondurable goods, led by chemicals and drugs. Rising durable inventoried presumably reflect stocking up ahead of tariff-related price increases for imported goods.
Market Consensus Before Announcement
Forecasters see no revision from up 0.5 percent in the flash.
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.
