| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.0% | 0.0% to 0.0% | 0.2% | 0.4% | 0.3% |
Highlights
Wholesale inventories are up 0.2 percent in the second estimate for April from March, revised up from the first estimate showing 0.0 percent. That beats the Econoday consensus forecast of an unrevised 0.0 percent. There are gains in both durable and nondurable goods, with nondurables outperforming. March is revised to show a rise of 0.3 percent from February from an increase of 0.4 percent previously reported.
Wholesale inventories are up 2.3 percent from a year ago. The wholesale inventory-sales ratio is at 1.30 in April versus 1.30 in March and 1.34 in April a year ago.
April details, month on month, show a 0.1 percent increase for wholesale inventories of durable goods, with a 0.8 percent increase in autos, a rise of 1.8 percent in professional equipment and 2.7 percent in computer equipment, presumably reflecting stocking up ahead of import tariffs. Meanwhile, there was a 0.3 percent increase for nondurable goods, led by drugs, apparel, groceries and miscellaneous.
Wholesale inventories are up 2.3 percent from a year ago. The wholesale inventory-sales ratio is at 1.30 in April versus 1.30 in March and 1.34 in April a year ago.
April details, month on month, show a 0.1 percent increase for wholesale inventories of durable goods, with a 0.8 percent increase in autos, a rise of 1.8 percent in professional equipment and 2.7 percent in computer equipment, presumably reflecting stocking up ahead of import tariffs. Meanwhile, there was a 0.3 percent increase for nondurable goods, led by drugs, apparel, groceries and miscellaneous.
Market Consensus Before Announcement
The second report on wholesale inventories for April sees no revision from 0.0 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.
