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Tuesday, October 15, 2019
HomeNewsEconomyBusiness Inventories Build Strongly in July, Big Positive for Q3 GDP

Business Inventories Build Strongly in July, Big Positive for Q3 GDP

Employees have short meeting in the warehouse to check business inventory levels of goods. First in first out. (Photo: AdobeStock)
Employees have short meeting in the warehouse to check business inventory levels of goods. First in first out. (Photo: AdobeStock)

Employees have short meeting in the warehouse to check business inventory levels of goods. First in first out. (Photo: AdobeStock)

Business inventories started the third quarter (Q3) with a large 0.6% build in July, a big positive for gross domestic product (GDP). That tops the 0.5% median forecast and indicates businesses are trying to keep pace with sales.

Sales

The combined value of distributive trade sales and manufacturers’ shipments for July, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,454.1 billion. That’s an increase of 0.2% (±0.1%) from June 2018 and 8.1% (±1.2%) higher than July 2017.

Inventories

Manufacturers’ and trade inventories, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $1,950.0 billion. Again, that’s a gain of 0.6% (±0.1%) from June 2018 and is 4.3% (±1.3%) higher than July 2017.

Inventories/Sales Ratio

The total business inventories/sales ratio based on seasonally adjusted data at the end of July was 1.34. The July 2017 ratio was 1.39.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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