U.S. April wholesale inventory data downwardly revised to -0.5 pct

U.S. wholesale inventory data for the month of April was downwardly revised from its initial estimate. The data was revised down to -0.5 percent sequentially from the earlier estimate of -0.3 percent month-on-month. The data came in lower than consensus forecast that expected the figure to remain at -0.3 percent.

The drop in April was mainly due to declines recorded in durable and nondurable goods that fell 0.3 percent and 0.8 percent, respectively. Inventories of computers, autos and drugs were mainly subdued in April. Given the downward revision to April report, Barclay’s Q1 inventory tracking estimate fell and in turn dragged the GDP tracking estimate down to 2 percent quarter-on-quarter, noted Barclays in a research report.