Business Inventories Rise: Double Versus Expectations

We had already seen some very weak data from August for industrial production and for capacity utilization this morning. Then came a report showing a huge, more current pop in consumer sentiment from the Reuters/University of Michigan report. Now comes a report showing a rise in business inventories.

As you might have expected with prior wholesale inventories, the July reading for business inventories from the Census Bureau showed that business inventories rose by 0.8% to a seasonally adjusted figure of $1.592 trillion in July, versus a 0.1% gain in June. Bloomberg was calling for only a 0.5% rise and Dow Jones was calling for a gain of +0.4% for this report.

Retail was given the blame here, as their 1.1% gain was blamed on more cars on car lots. Vehicles and parts were up 2.7% in July, but that is said to be more than 20% higher from a year earlier.

The hope today is that the 0.9% gain in retail sales will have eaten up much of the inventory. That being said, with yesterday's announcement of a new round of quantitative easing from Ben Bernanke and friends at the Federal Reserve, this number was going to likely be ignored. It is also a July reading and we have seen more current data.


Filed under: 24/7 Wall St. Wire, Economy
Read Full Story

Sign up for Breaking News by AOL to get the latest breaking news alerts and updates delivered straight to your inbox.

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.