Build in Business Inventories Boosting GDP
The U.S. Census Bureau reported the second estimate for wholesale inventories in May held steady at a solid 0.4%, meeting the consensus forecast. The advance estimate also posted a reading that could prove another big boost to gross domestic product (GDP).
| Indicator | Prior | Consensus Forecast | Forecast Range | Result |
| Inventories – M/M ∆ | 0.8 % | 0.4 % | 0.1 % to 0.4 % | 0.4 % |
All results are after adjustment for seasonal variations but not for price changes.
Inventories Build
Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices came in at $678.1 billion, up 0.4% (±0.2%) from the revised April level.
Business inventories are now up 7.7% (±1.1%) from the revised May 2018 level.
Sales Lag Inventories
Sales of merchant wholesalers, except manufacturers’ sales branches and offices came in at $503.4 billion, up 0.1% (±0.4%) from the revised April level. They’re now up 0.4% (±0.9%) year-over-year.
The March 2019 to April 2019 percent change was unrevised from the preliminary estimate of down 0.4% (±0.5%).
Inventories/Sales Ratio
The May inventories/sales ratio for merchant wholesalers, except manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.35. The May 2018 ratio was 1.26.
