In the United States, wholesale inventories for September increased by 0.5% m/m are above expectation. The nondurable sector posted a robust growth in the referred month as it is stood at 1.9%m/m against 0.5% in the previous month, similarly, wholesale drug inventories and wholesale apparel inventories posted a solid growth of 4.4% and 2.3% in the same month respectively. These sectors together supported the wholesale inventories.
The wholesale inventories data outpaced the BEA's assumptions incorporated in the advance estimate of Q3 GDP. The revised path of wholesale inventories through September suggests total private inventories subtracted 1.1pp from GDP real growth in Q3, less than the 1.4pp initially estimated by the BEA. This boosted the Q3 GDP tracking estimate by three-tenths to 1.7%, says Barclays.
