U.S. business inventories likely to have risen in November – Wells Fargo

U.S. business inventory data is set to be released this week. Businesses in October had dialed back inventories on the month for the second time in 2017. The entire fall was in the wholesale sector, which dropped 0.5 percent. Retailers were flat and manufacturers actually increased stockpiles 0.2 percent.

In retail, it was a mixed picture with declines in autos countered by gains in other areas. Sales recorded a 0.6 percent overall rise with gains of about the same magnitude across retail, wholesale and manufacturing.

Following a huge 0.8 percentage point rise in the third quarter to the GDP, October’s data implies less support from inventories in the fourth quarter. According to a Wells Fargo research report, the business inventories are expected to have risen 0.3 percent in November on a sequential basis.

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