Last Update: 11-Feb-14 10:12 ET
- Wholesale inventories increased 0.3% in December after increasing 0.5% in November. The Briefing.com consensus expected wholesale inventories to increase 0.6%.
- The BEA assumed merchant wholesaler inventories rose 0.6% in December when calculating the advance fourth quarter GDP report. The lower-than-expected increase in wholesale inventories will result in a negative revision to fourth quarter GDP growth.
- Durable wholesale inventories increased 1.3% in December, up from a 0.6% gain in November. Computer equipment (5.3%) and machinery (2.2%) reported large gains.
- Nondurable wholesale inventories declined 1.3% after increasing 0.3% in November. Large declines were reported in farm products (-5.2%) and petroleum (-5.1%).
- Wholesale sales increased 0.5%. That was down from a 1.0% increase in November.
- The inventory-to-sales ratio remained at 1.17.
- 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.