While hope springs eternal for Q3 GDP, the revised jump in Q2 inventories data (+0.3% in June vs 0.0% exp and +0.2% in May revised up from initial) suggests perhaps Q3 will be a let-down. But all eyes will be focused on Wholesale Sales which surged 1.9% MoM – the most since Sept 2012, though we note sales remain lower (-0.45%) YoY and inventories higher (+0.24%) YoY. This move notched the wholesale inventories-to-sales ratio down to 1.33 – which remains deep in recession territory despite its improvement. Sadly – for the recovery-optimists – auto inventory-to-sales ratio rose to 1.82x.
Biggest Sales jump in:
- Hardware +7.7%
- Petroleum Products: +5.1%
- Farm Products: +5.1%
Sales declines in:
- Paper: -1.7%
- Automotives -1.4%
- Prof Equipment: -0.5%
- Lumber: -0.4%
- Furniture: -0.3%
But sales gains reduced the ratio…
And perhaps most importantly, wholesale auto inventories rose relative to sales…
Still, it;s probably nothing some more free 10year term credit from the government can’t solve?!
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