US August wholesale inventories revised lower
SPY•US wholesale inventories rose a revised 0.5% in August, below the previously reported 0.7%, while sales accelerated 1.8%. Economists expect inventories to contribute to third-quarter GDP growth after subtracting 0.53 percentage point in the second quarter.
1. Inventories revised lower
Wholesale inventories rose 0.5% in August, the Commerce Department's Census Bureau said, revising down the previous estimate of 0.7%. Inventories increased 1.4% in July and were up 6.4% from a year earlier. Durable-goods inventories rose 0.8%, while nondurable-goods stocks were unchanged; petroleum inventories fell 3.9%.
2. Sales and GDP outlook
Wholesale sales accelerated 1.8% in August after rising 1.0% in July. At August's sales pace, it would take 1.18 months to clear shelves, down from 1.19 months in July. Economists expect inventories to contribute to third-quarter GDP growth after subtracting 0.53 percentage point in the second quarter; estimates for third-quarter growth are mostly around a 3.0% annualized rate.
