2017 Economic Calendar
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Business Inventories  
Released On 6/14/2017 10:00:00 AM For Apr, 2017
PriorConsensusConsensus RangeActual
Inventories - M/M change0.2 %-0.1 %-0.2 % to 0.3 %-0.2 %

Highlights
The news on the second quarter continues to darken as business inventories fell 0.2 percent in April which is 1 tenth below Econoday's consensus. Inventories at retailers also fell 0.2 percent with wholesale inventories down a very sharp 0.5 percent. Factory inventories were positive but only barely, at 0.1 percent. Declining inventories are a possible signal of business caution and a certain negative for second-quarter GDP.

Recent History Of This Indicator
Business inventories are posing their own threat to second-quarter GDP and are expected to open the quarter at a consensus draw of 0.1 percent in April vs a 0.2 percent build in March. Low inventories do not likely reflect increased production needs, which have been modest, and more likely reflect caution among businesses that inventories, relative to demand, may be too high.

Definition
Business inventories are the dollar amount of inventories held by manufacturers, wholesalers, and retailers. The level of inventories in relation to sales is an important indicator of the near-term direction of production activity. (Bureau of the Census)  Why Investors Care
 
[Chart]
Inventories tend to rise when economic conditions are strong since sales are rising at the same time, the inventory-to- sales ratio may remain stable, or rise at a very slow pace. Inventories tend to when economic conditions are weak since sales are falling at the same time, the inventory-to-sales ratio may remain relatively stable. The I- S ratio then begins to rise as sales fall more quickly than inventory growth.
Data Source: Haver Analytics
 
 

2017 Release Schedule
Released On: 1/132/153/154/145/126/147/148/159/1510/1311/1512/14
Release For: NovDecJanFebMarAprMayJunJulAugSepOct
 


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