US business inventories for July 0.6% vs. 0.6% exp.
Last month 0.1%
in the 2nd quarter inventory liquidation subtracted nearly 1% from GDP. That was a drag on the 4.2% annualized rate. Economists expect a rebound in the 3rd quarter and that should help GDP.
- Prior month
- business inventories for July rose 0.6%. That was as expected
- The prior month came in at 0.1% (not revised)
- business sales increased 0.2% versus June's 0.3% rise
- inventory to sales ratio picked up to 1.34 months versus 1.33 months
- the inventories were boosted by a larger than expected increase in the stock of motor vehicles
- retail inventories increased 0.5%
- motor vehicles inventories jumped 1.2%
- retail inventories including autos which goes into the calculation of GDP, gained 0.1% in July. They fell -0.1% in June
Later today, the Atlanta Fed and the NY Fed will release their current estimates for third-quarter GDP.
- The last estimate for GDP from Atlanta was at the 3.8%
- The NY Fed estimate was much lower at 2.2%