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Economy

Business Inventories and Sales Confirming Weak Q2 GDP Expectations

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By Jon C. Ogg Updated Published

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Business inventories for the month of May were up 0.3%, while inventory sales were 0.1% lower in May. The report from the Commerce Department does have a rather large lag — this is a May report — but it should reinforce and confirm the slowing data that we saw in late-May and into June. It also shows yet one more reason why a “Sell in May and go away!” thesis rules for so many investors as there is just so much history pointing to a summer slowdown.

Dow Jones had a consensus inventories target of +0.2% for May, and Bloomberg was calling for a reading of +0.3%.

The seasonally adjusted figure came to $1.578 trillion in inventories. The seasonally adjusted sales figures were $1.245 trillion. This report should act to mute any high hopes that the second quarter’s GDP report will show much upside.

The markets continue to linger on Monday after weakness in Europe again, with the DJIA down about 80 points and with the S&P 500 Index down about 7 points.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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