Today's Report (12/15/2021)

Sales

The combined value of distributive trade sales and manufacturers’ shipments for October, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,709.1 billion, up 2.1% (±0.2%) from September 2021 and was up 16.7% (±0.7%) from October 2020.

Inventories

Manufacturers’ and trade inventories for October, adjusted for seasonal and trading-day differences but not for price changes, were estimated at an end-of-month level of $2,127.5 billion, up 1.2% (±0.1%) from September 2021 and were up 7.8% (±0.5%) from October 2020.


What is it?

Is the Dollar amount of inventories (Stock) held by manufacturers, wholesalers, and retailers.

What are the fundamental effects?

The level of inventories in relation to sales is an important indicator of the near-term direction of production activity. Rising inventories can be an indication of business optimism that sales will be growing in the coming months. If inventory growth lags sales growth, then manufacturers will have to boost production lest commodity shortages occur.

How does it affect the markets?

CURRENCY - If the report shows that inventories are rising faster than sales, it could suggest the economy is slowing down, which could portray near-future lower rates.

STOCKS - Usually a muted slow response with stocks, but a slowdown in sales and production could displease equity investors because of the implications for earnings.

BONDS - Faster than expected growth in inventory might upset traders in fixed income security because it adds to the GDP growth and might put upward pressure on interest rates.