Wholesale Inventories Rise Slower Than Expected
The U.S. Census Bureau has released the numbers for the monthly wholesale report for July 2014.
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The U.S. Census Bureau released the numbers for the monthly wholesale report for July 2014. The total inventories only rose 0.1%, against a Dow Jones and Bloomberg consensus estimates of 0.5%. This compares to the previous month’s readings at 0.3%. Overall the inventory gain in July was the smallest monthly gain since July of 2013.
Sales signaled a strong increase in July with a reading of 0.7%. This would pull the stock-to-sales ratio down slightly to a lean 1.16 from the previous level of 1.17. This ratio is unchanged from the previous year.
These low inventories realize the need for restocking while strong sales imply a strong demand from the retail sector.
Wholesale inventories of farm products, computer equipment and petroleum products fell sharply in the July.
Apparel, autos and drugs rose to meet strong retail demand due to increased manufacturing output.
This report could act as a drag against the business inventories report on Friday. The consensus is currently calling for a 0.4% build.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
