BOTTOM LINE: Inventories at US wholesalers rose more than expected in May, led by gains in business equipment and machinery and a jump in petroleum stockpiles, Bloomberg said. Sales rose 1.6% versus a 1.5% gain in April. The inventory-to-sales ratio dropped to a record low of 1.15 months. Sales of durable goods rose 2.6% versus a .2% increase in April. Inventories of metals rose 2.9% versus a 4.5% jump in April. I expect inventory rebuilding to add to economic growth over the intermediate-term as corporations gain confidence in the durability of the current expansion.
Portfolio Manager's Commentary on Investing and Trading in the U.S. Financial Markets
Monday, July 10, 2006
Wholesale Inventories Rise as Sales Increase
- Wholesale Inventories for May rose .8% versus estimates of a .5% increase and an upwardly revised 1.3% gain in April.
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