Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. He operates the blog MISH'S Global Economic Trend Analysis and believes in the Austrian School of economics.
Wholesale inventories in June rose 0.7% vs a Bloomberg Econoday consensus of 0.6%.
Econoday was happy with the results but let’s dive a little deeper.
Wholesale inventories rose a sharp 0.7 percent in June in what was a wanted build given a likewise 0.7 percent rise in sales. The stock-to-sales ratio is unchanged at a lean 1.29. If there is an imbalance, it’s inventories of autos which rose 1.4 percent while sales fell 0.5 percent. Otherwise this a very positive report, pointing at the same time to sales growth and inventory growth.
Diving deeper into the Monthly Wholesale Trade Report, it’s not just autos that have an anomaly.
Analyzing the Skew
People are eating more and taking more prescription drugs. Outside of autos, Econoday labels this a “very positive” report. Really?
Mike “Mish” Shedlock