US Business inventories to add to Q3 GDP - Wells Fargo

Analysts from Wells Fargo, point out that business inventories rose for a third consecutive month in July and look poised to add to third quarter GDP. 

Key Quotes: 

“Building on top of a solid rise in June, business inventories rose 0.2 percent In July. Inventories rose at manufacturers and wholesalers, but edged down in the retail sector as non-auto retailers pared back stocks.”

“With sales also rising 0.2 percent, the inventory-to-sales (I-S) ratio held steady in July. Auto inventories at the retail level remain elevated, while ex-autos the retail I-S ratio ticked down.”

“Although only the first month of the quarter, today’s report supports our call that inventories will be additive to GDP in Q3. As we have previously highlighted, it would not take much of an increase in real inventories to provide a significant boost to GDP following two quarters of scant stock building. We are currently penciling in a $30 billion annualized increase, which would add 0.7 percentage points to topline GDP growth.” 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.