Falling Wholesale Inventories are a Positive Sign for the US Economy and the USD Later on - Forex News by FX Leaders

Falling Wholesale Inventories are a Positive Sign for the US Economy and the USD Later on

Posted Thursday, October 29, 2020 by
Skerdian Meta • 1 min read

From May until July, US wholesale inventories were declining. While to some, it might seem like a negative thing, it is not. Declining wholesale inventories means that businesses are buying from manufacturers, as the demand from the consumers is on the increase. In turn, manufacturers will increase production, and all of this is good for the economy.

In August they posted a 0.5% increase, which however, was revised lower to 0.4%, while yesterday’s report showed a 0.1% decline. The USD should benefit from all the positive data recently and since yesterday, it has been surging.

US wholesale inventories for September 2020

  • Wholesale inventories for September -0.1% vs. +0.4% estimated
  • Wholesale inventories fell -0.1% vs. 0.4% estimate. Last month +0.3% (revised from +0.4%).
  • Retail inventories rose 1.6% vs. 0.5% estimate. Prior month revised to 0.5% from 0.8%.
  • Retail inventories are down -9.1% year on year
  • September retail inventories excluding automobiles +0.9%
  • Durable goods inventories fell -0.1% vs. +0.5% last month
  • Non-durable goods came in unchanged vs. unchanged last month.
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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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