- December revised higher to +1.1% from +1.0%
- Wholesale sales -0.1% vs +0.8% expected
- Stock-to-sales ratio flat at 1.15 months
Inventories are an important component to GDP so this is a slight negative to Q1. The earlier trade deficit was another negative but a larger trade deficit because of higher imports is also a sign of a pickup in the economy. Overall, this might mean a softer Q1 GDP print but it’s building a base for sustained strength.
