2018 Economic Calendar
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Business Inventories  
Released On 8/15/2018 10:00:00 AM For Jun, 2018
PriorPrior RevisedConsensusConsensus RangeActual
Inventories - M/M change0.4 %0.3 %0.1 %0.1 % to 0.3 %0.1 %

Highlights
Business inventories rose an as-expected but still marginal 0.1 percent in June which, like this morning's downward revision to June retail sales, will hold down forecasts for the second estimate of second-quarter GDP.

But this only a statistical nuance as the slight build in inventories is actually very positive for the economy given the strength of business sales which rose 0.3 percent in the month. Year-on-year growth in inventories is at 4.0 percent, less than half of the 8.2 percent rise for sales. As inventories are built, production and employment should get a lift.

Inventories at retailers look thin especially given the strength of retail spending. Inventories for this sector edged only 0.1 percent higher with the year-on-year rate at 1.7 percent. Inventories at manufacturers and at wholesalers also rose only 0.1 percent in June with these yearly rates both at 5.1 percent.

Consensus Outlook
A 0.1 percent build is expected for business inventories in June following a 0.4 percent build in May. Inventories have been on the rise but have not been keeping pace with sales which have been rising faster.

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.  Why Investors Care
 
[Chart]
Inventories relative to sales, as tracked by the inventory-to-sales ratio, tend to fall when sales are strong and tend to rise when sales are weak. A low reading for the ratio indicates that inventory conditions are lean while a high reading may indicate that inventory growth is unwanted.
Data Source: Haver Analytics
 
 

2018 Release Schedule
Released On: 1/122/143/144/165/156/147/168/159/1410/1511/1512/14
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