2017 Economic Calendar
POWERED BY  econoday logo
U.S. & Intl Recaps   |   Event Definitions   |   Today's Calendar   |   

Business Inventories  
Released On 7/14/2017 10:00:00 AM For May, 2017
PriorConsensusConsensus RangeActual
Inventories - M/M change-0.2 %0.3 %0.2 % to 0.3 %0.3 %

Inventories are looking to be a slight positive for second-quarter GDP as a 0.3 percent build in May offsets a 0.2 percent draw in April. But it's inventories at auto dealers that are making the difference, jumping 1.1 percent in May and lifting the retail component to a 0.5 percent build. The May build in vehicles matches a May gain for retail sales of vehicles, though sales proved soft in June.

Wholesalers also built inventories in May, up 0.4 percent with manufacturers, however, working down their inventories by 0.1 percent. Total sales in May came in at minus 0.2 percent which pulls up the inventory-to-sales ratio to a less lean 1.38.

Whether May's overall build points to overhang will depend on how strong June business sales will prove where the outlook for the retail sector, based on this morning's retail sales report, is not positive.

Consensus Outlook
Business inventories opened the second quarter with a 0.2 percent decline in April but, in what would be a plus for second-quarter GDP, are expected to rise 0.3 percent in May. A return to inventory expansion would signal a firming in business confidence.

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.  Why Investors Care
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

powered by  [Econoday]