Wholesale Inventories Decline for Record 11th Straight Month
Wholesale inventories were reduced at a faster pace than expected in July, but a bump in sales provides further hope that businesses will begin restocking, helping the economy to stabilize and perhaps create new jobs.
Inventories were slashed 1.4% in July, marking a record 11 straight months of declines. Moreover, the cutback in June was revised to -2.1% from an initially reported -1.7%. Both numbers represent a drag on Q3 GDP, though the contraction is smaller than what was seen in the second quarter.
A cutback in inventories can also provide optimism, however. Greater than expected cutbacks in previous months means businesses may have to restock at a faster pace than originally thought, which provides a boost to current GDP estimates. That interpretation is backed up by the 0.5% boost in sales â€
Leave a Comment
By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...Late-Stage Delinquencies are Surging
Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...Published by the Federal Reserve Bank of San Francisco
It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...