Last Update: 10-Feb-15 10:13 ET
- Wholesale inventories increased 0.1% in December following an unrevised 0.8% increase in November. The Briefing.com Consensus expected wholesale inventories to increase 0.2%.
- The BEA estimated that wholesale inventories increased 0.6% in the advance Q4 2014 GDP report. The downside miss will likely result in negative revisions for fourth quarter GDP.
- Durable goods inventories increased 0.2% in December after increasing 0.9% in November. A 6.2% decline in petroleum inventories led to a 0.1% decline in nondurable goods inventories.
- Wholesale sales fell 0.4% for a second consecutive month in December. Nearly the entire decline can be attributed to lower petroleum prices, which reduced petroleum sales by 13.7% in December.
- The inventory-to-sales ratio increased to 1.22 in December from 1.21 in November.
- Wholesale inventories are just one component of total business inventories. Manufacturing and retail inventories make up the rest of total business inventories. The market ignores this release and doesn't pay much attention to the full business inventory release that comes a few days later. Improved inventory management in recent years has reduced the economic swings associated with inventories and has helped produce a long-term downtrend in the inventory-to-sales ratio.