Monday, January 11, 2010

Breaking Down Wholesale Inventories

Friday's surprise 1.5% gain in Wholesale Inventories (i.e. what appeared to be an inventory rebuild) was not real, just like last month's post Wholesale Inventory Correction isn't "Real" in October. As can be seen below, the spike was entirely to Farm Products (Wholesale Inventories ex Farm Products was 0.1%) and Farm Products (both livestock and grains) rocketed in price in November.

In other words, this was a nominal gain, thus will not positively impact GDP in Q4.

Source: Census


  1. Just realized you don't get a lot of comments, but perhaps that's because we're all read-only RSS junkies. At least I am. Found your blog off another site though and I love the bite-size graphical representation of all the data that swirls around us. Thanks for putting this out there

  2. thanks... yeah i get between 2-3000 hits most days, but have ~1700 rss readers on google reader.

    what's funny is that i get a ton of comments if i have a post with my view on gold or equities, but that's about it