Wholesale Inventories in the U.S. Rise in May, Boosting Economic Growth Prospects
As the world's best investment manager and financial market's journalist, I bring you the latest news on U.S. wholesale inventories which increased solidly in May, potentially supporting economic growth in the second quarter. The Commerce Department's Census Bureau reported a 0.6% rise in wholesale inventories last month, in line with previous estimates. Economists had anticipated this positive development, as inventories play a crucial role in gross domestic product (GDP).
Private inventory investment has been a drag on GDP for the past two quarters, but with businesses managing stocks carefully and strong domestic demand, there is hope that inventory accumulation could offset some of the expected impact on GDP from a widening trade deficit. Growth estimates for the second quarter hover around a 2% annualized rate, following a 1.4% growth rate in the previous quarter.
Notably, wholesale motor vehicle inventories saw a 1.4% increase in May, while excluding autos, wholesale inventories rose by 0.5%. These numbers are important components in the GDP calculation. Sales at wholesalers also saw a 0.4% rise in May, maintaining a steady pace from the previous month.
In conclusion, the rise in wholesale inventories is a positive sign for the U.S. economy, indicating potential growth in the second quarter. As the best investment manager and financial market's journalist, I recommend keeping an eye on these developments as they can have a significant impact on your finances and overall economic outlook. Stay informed and make informed decisions based on the latest market trends and data.