2017 Economic Calendar
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Business Inventories  
Released On 8/15/2017 10:00:00 AM For Jun, 2017
PriorConsensusConsensus RangeActual
Inventories - M/M change0.3 %0.4 %0.2 % to 0.6 %0.5 %

After a flat start to the second quarter, businesses built up their inventories by a sharp 0.5 percent in June which beats Econoday's consensus by 1 tenth. The build is centered in wholesale which rose 0.7 percent with inventories among retailers up 0.6 percent in June which, based on this morning's retail sales report, is a plus going into what proved to be a very strong July for the sector. Factory inventories in June rose 0.2 percent.

In an uncertain result in the report, the rise in inventories exceeded the 0.3 percent rise in underlying sales to lift the inventory-to-sales ratio 1 tick to a less lean 1.38. This could mean that supply is exceeding demand, or however that businesses are stocking up ahead of what see as better business ahead. Note that the slightly higher-than-expected headline may give a lift to second-quarter revision estimates which are likely to get a more definitive lift from the upward revisions in today's retail sales report.

Consensus Outlook
Business inventories have been inching higher, up 0.3 percent in May but following a 0.2 percent decline in April. But advance indications for June were very strong, rising 0.6 percent each for the wholesale and retail components with manufacturing rising 0.2 percent. Econoday forecasters are calling for a 0.4 percent gain in June in data that could affect revision estimates for second-quarter GDP.

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
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