| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.2% | -0.1% to 0.3% | 0.1% | 0.1% | 0.2% |
Highlights
Wholesale inventories are up 0.1 percent in the second estimate for July from June, revised from the first estimate showing a rise of 0.2 percent, and missing the Econoday consensus forecast for an unrevised gain of 0.2 percent. June is revised to show a rise of 0.2 percent from May compared with an increase of 0.1 percent previously reported.
For July from June, wholesale inventories of durable goods decline 0.2 percent while nondurable goods rose 0.7 percent. In the durables category, a drop of 1.6 percent in autos is the big mover. In non-durables, groceries and apparel are up the most, 2.0 percent and 1.9 percent, respectively.
Wholesale inventories are up 1.3 percent in July from a year ago. The wholesale inventory-sales ratio is at 1.28 in July versus 1.29 in June and down from 1.34 in July a year ago.
For July from June, wholesale inventories of durable goods decline 0.2 percent while nondurable goods rose 0.7 percent. In the durables category, a drop of 1.6 percent in autos is the big mover. In non-durables, groceries and apparel are up the most, 2.0 percent and 1.9 percent, respectively.
Wholesale inventories are up 1.3 percent in July from a year ago. The wholesale inventory-sales ratio is at 1.28 in July versus 1.29 in June and down from 1.34 in July a year ago.
Market Consensus Before Announcement
Forecasters expect inventories unrevised from the flash at an increase of 0.2 percent.
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.
