Economic Indicators

U.S. wholesale inventories decline further in June

imageEconomic Indicators14 hours ago (Aug 07, 2020 10:25AM ET)

WASHINGTON (Reuters) – U.S. wholesale inventories fell less than initially estimated in June, likely reflecting a rebound in goods imports after the COVID-19 pandemic disrupted trade flows.

The Commerce Department said on Friday that wholesale inventories decreased 1.4% in June, instead of dropping 2.0% as estimated last month. Stocks at wholesalers fell 1.2% in May. The component of wholesale inventories that goes into the calculation of gross domestic product dropped 1.4% in June.

Goods imports rebounded by the most in more than five years in June as trade flows improved.

The continued inventory drawdown contributed to GDP declining at a record 32.9% annualized rate in the second quarter. Inventories subtracted almost 4 percentage points from GDP, the most since the fourth quarter of 1982. Inventories have declined for five straight quarters. The economy fell into recession is February.

The decline in inventories in June was broad. Stocks of motor vehicles and parts fell 2.1%.

Sales at wholesalers surged 8.8% in June after increasing 5.7% in May. At June’s sales pace it would take wholesalers 1.38 months to clear shelves, down from 1.53 months in May.

U.S. wholesale inventories decline further in June

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!