Following a disappointing tumble in October, November wholesale inventories rebounded 0.8% MoM (better than expected) but slowed modestly YoY (+3.96%).
However, wholesale sales surged 1.5% MoM, pushing it to a near-7-year-high 9.85% YoY surge.
So this should be a modest positive for Q4 GDP (better than expected inventory growth) erasing October's loss for a 0.5% gain so far in Q4.
Further good news is that the wholesale trade "gap" continues to decline...
The question is - how sustainable is the credit-fueled buying spree? And what happens if retail doesn't follow the same path, buying this product from wholesale?