US: Strong economic releases all-around - ANZ

Research Team at ANZ, notes that the US wholesale inventories were up 0.1% m/m (mkt: 0.2%) in May, from 0.7% previously.

Key Quotes

“Durable goods were up 0.1% with non-durable up 0.2%. Sales growth climbed 0.5%, from 0.8%. The inventory to sales ratio was at 1.35 compared to 1.36 the previous three months. At the margin, the slight tick down in the inventory to sales ratio is a positive.

Separately, NFIB small business optimism beat expectations at 94.5 (mkt: 93.9), from 93.8; and job openings (JOLTS) declined to 5,500 in May, from an all-time high of 5,845 in April. Job openings remain at elevated levels.

Bullard reiterated his 30 June comments at a speech in St. Louis today. Over the next two and a half years he expects 2% GDP; 4.7% unemployment; trimmed-mean PCE inflation at 2%; and the policy rate at 63bps. He spent time discussing the contrast between their old long-run steady state view of the world and the new set of possible regimes.”