Today it was reported that wholesale inventories rose 1.5% which was higher than the consensus estimate of a .6% rise. Briefing.com notes, "wholesale sales rose 0.4% in September after increasing 0.5% in August. The gains suggest that the growth in inventories was planned and not the result of shoppers leaving more goods on the shelves." Although sales did rise, they did not keep pace with inventory growth.
The inventory growth for August was revised higher to 1.2% versus the originally reported level of .8%. This revision was not expected and will result in a higher upward revision to GDP for Q3 at the expense of a downward revision in 4Q GDP. The resulting inventory to sales ratio increased to 1.18 versus 1.17 in the prior period. Although the I/S ratio did rise, it is in line with the average I/S ratio from 2003 - 2008.
The inventory growth for August was revised higher to 1.2% versus the originally reported level of .8%. This revision was not expected and will result in a higher upward revision to GDP for Q3 at the expense of a downward revision in 4Q GDP. The resulting inventory to sales ratio increased to 1.18 versus 1.17 in the prior period. Although the I/S ratio did rise, it is in line with the average I/S ratio from 2003 - 2008.
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| From The Blog of HORAN Capital Advisors |
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