Inventories Surge Led by Autos, Trade Deficit Narrows: A Boost to Second-Quarter GDP

MishTalk

In what is likely to provide a big boost to second quarter GDP numbers, wholesale and retail inventories surged in June according to Advance Indicators from the Census Department.

By Mish

The advance numbers also point to a narrowing of the trade deficit which will add a small bit to second quarter GDP.

Advance Trade

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Advance Inventories

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This inventory build is unwarranted in light of actual retail sales. These numbers will likely boost second quarter GDP substantially. Expect a substantial payback in the third quarter.

I will have an estimate later today.

Mike “Mish” Shedlock

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