US: Wholesale inventories likely increased 0.6% m-o-m in June - Nomura

The advance estimate indicates that US wholesale inventories increased 0.6% m-o-m in June, with strength in both durable and nondurable goods categories, both of which increased 0.6%, according to analysts at Nomura.

Key Quotes

“Inventory-to-sales ratios remained relatively low in H1 2017, as sales improved steadily from last year’s levels. We continue to expect wholesalers to increase inventory accumulation in the near term after a long period of inventory adjustment. However, businesses still appear to remain cautious, possibly reflecting policy uncertainty in the near term. Business sentiment still remains high, but material deterioration could have an adverse impact on inventory investment.”