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Last Update: 09-Nov-11 10:55 ET
Wholesale Inventories Slip in September, Likely Lead to Lower Q3 GDP Revision
In the advance third quarter GDP report, the BEA estimated that wholesale inventories increased by roughly 0.9% in September. That estimate proved to be too optimistic.
Wholesale inventories actually fell 0.1% in September. The Briefing.com consensus expected wholesale inventories to increase 0.5%.
The discrepancy between the actual number and the BEA estimate alone should lead to a substantial negative revision to Q3 GDP in the second estimate. In addition, there will be added downward pressure on the second estimate for Q3 GDP on account of inventories in August being revised from 0.4% to 0.1%.
Wholesale sales levels were up a healthy 0.5% in September after increasing 1.0% in August. Sales were helped by a 7.8% increase in chemical demand and a 3.9% increase in petroleum spending.
The inventory-to-sales ratio remained at 1.15 in September.
Wholesale inventories actually fell 0.1% in September. The Briefing.com consensus expected wholesale inventories to increase 0.5%.
The discrepancy between the actual number and the BEA estimate alone should lead to a substantial negative revision to Q3 GDP in the second estimate. In addition, there will be added downward pressure on the second estimate for Q3 GDP on account of inventories in August being revised from 0.4% to 0.1%.
Wholesale sales levels were up a healthy 0.5% in September after increasing 1.0% in August. Sales were helped by a 7.8% increase in chemical demand and a 3.9% increase in petroleum spending.
The inventory-to-sales ratio remained at 1.15 in September.
