US Wholesale Inventories Fall in August

U.S. wholesale inventories in August fell more than previously reported as businesses ran down their stocks of farm goods and clothes, the Commerce Department reported on Friday.

Inventories dropped 0.2 percent during the month, the department said.

A drop in inventory investment weighed heavily on economic growth in the second quarter, and some economists believe the inventory correction is close to running its course.

But stocks have edged lower in the first two months of the third quarter, which could drag on economic growth during the period.

The department’s new monthly advance economic indicators report published last month had estimated that wholesale inventories fell 0.1 percent in August. Economists polled by Reuters expected that reading to be unrevised on Friday.

The component of wholesale inventories that goes into the calculation of GDP – wholesale stocks excluding autos – fell 0.3 percent in August.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza