US wholesale inventories beat expectations in August

Wholesale inventories rose 0.1% month-on-month compared with a 0.3% downwardly revised decline in July and with analysts’ expectations for a flat reading.

Wholesale inventories of durable goods rose 0.3% month-on-month in August, as a 0.3% decline in automotive inventories was offset by an increase in computer and machinery, with the former rising 1.9%, while the latter climbed 0.5%.

Nondurable goods inventories declined 0.2% month-on-month to mark a third consecutive month of decline.

Meanwhile, wholesale trade in August declined 1% month-on-month compared with analysts’ expectations for a 0.4% drop and with a 0.3% decline in the previous month.

“Slower-than-expected wholesale inventory growth in August and the downward revision to July data suggest less private inventory investment in third quarter,” said analysts at Barclays.

“As a result, our third quarter GDP tracking estimate fell 0.3% to 1.2%.”