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.

 

https://alternativeeconomics.co/res?src=https%3A%2F%2Fwww.zerohedge.com%2Fsites%2Fdefault%2Ffiles%2Finline-images%2F20180110_WH.png

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...

 

https://alternativeeconomics.co/res?src=https%3A%2F%2Fwww.zerohedge.com%2Fsites%2Fdefault%2Ffiles%2Finline-images%2F20180110_WH1.png

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?