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Purveyor

(29,876 posts) Wed Jul 10, 2013, 12:15 PM Jul 2013

Wholesale Inventories Fall, Likely Drag On GDP Growth

Source: REUTERS

By Jason Lange
WASHINGTON | Wed Jul 10, 2013 10:37am EDT

(Reuters) - Wholesale inventories fell in May by the most in a year and a half, the second straight monthly decline and a sign that restocking by businesses could weigh against economic growth in the second quarter.

The Commerce Department said on Wednesday wholesale inventories dropped 0.5 percent during the month, confounding the expectations of analysts polled by Reuters, who expected an increase.

The data reinforces the view that U.S. economic growth could slow in the April-June period after expanding at a lackluster 1.8 percent annual rate in the first quarter. Deep federal budget cuts, which have trimmed wages for federal workers, are seen biting into growth until around the end of the year.

The decline in inventories in May was the sharpest since September 2011. However, sales were stronger than expected, rising 1.6 percent.

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Wholesale Inventories Fall, Likely Drag On GDP Growth (Original Post) Purveyor Jul 2013 OP

Wouldn't declining inventories point to economic growth, not weigh against it? Sanity Claws Jul 2013 #1

That's what I'm used to reading. Igel Jul 2013 #2

Sanity Claws

(21,852 posts)

1. Wouldn't declining inventories point to economic growth, not weigh against it?

Reply to Purveyor (Original post)

Wed Jul 10, 2013, 02:13 PM

Jul 2013

If inventories are declining, then businesses have to reorder and thus create demand for more production. Right?
Is this just an attempt to turn a positive into a negative, as the propagandists are wont to do?

Igel

(35,356 posts)

2. That's what I'm used to reading.

Reply to Sanity Claws (Reply #1)

Thu Jul 11, 2013, 09:13 AM

Jul 2013

Although as far as turning an positive into a negative, the article's an irrelevancy. What's going to happen is going to happen, and there's no very-short-term downside to the article that is likely to matter a wit.

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