Wholesale Inventories at Record Lows

- Wholesale Inventories for June rose .8% versus estimates of a .6% increase and a .9% gain in May.

BOTTOM LINE: Stockpiles at US wholesalers rose .8% in June and sales increased faster, suggesting companies will need to boost production to keep up with demand, Bloomberg said. The inventory-to-sales ratio fell to an all-time low of 1.14 months in June. Stronger-than-expected inventory rebuilding will likely lead to an upward revision to second quarter US GDP growth. I continue to believe inventory rebuilding will help keep US growth relatively healthy over the intermediate-term.