Wholesale inventories are down 0.3 percent in the second estimate for May from April, unrevised from the first estimate showing a decline of 0.3 percent and matching the Econoday consensus forecast for no revision. April is revised to show a rise of 0.1 percent from March from an increase of 0.2 percent previously reported.

For May from April, wholesale inventories of durable goods dropped 0.8 percent while nondurable goods rose 0.5 percent.

Wholesale inventories are up 1.4 percent in May from a year ago. The wholesale inventory-sales ratio is flat at 1.30 in May from1 .30 in April and down from 1.34 in May a year ago.

May details, month on month, show the decrease for wholesale inventories of durable goods paced by decreases of 1.5 percent in autos, 2.2 percent in furniture, 2.8 percent in computer equipment, and 2.5 percent in miscellaneous equipment. Meanwhile, the 0.5 percent increase for nondurable goods is led by higher inventories of petroleum, alcohol and drugs.

The consensus sees no revision from the decline of 0.3 percent for May reported in the May flash.

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.