Today's Report (12/09/2021)

Sales

October 2021 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading day differences but not for price changes, were $620.5 billion, up 2.2% (±0.4%) from the revised September level and were up 22.2% (±1.8%) from the revised October 2020 level. The August 2021 to September 2021 percent change was revised from the preliminary estimate of up 1.1% (±0.5%) to up 1.7% (±0.5%).

Inventories

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading day differences, but not for price changes, were $759.4 billion at the end of October, up 2.3% (±0.4%) from the revised September level. Total inventories were up 14.4% (±1.4%) from the revised October 2020 level. The September 2021 to October 2021 percent change was revised from the advance estimate of up 2.2% (±0.4%) to up 2.3% (±0.4%).


US Wholesale Inventories - What Is It?

Wholesale inventories represent the number of goods that wholesalers keep in their stockrooms.

What Are The Fundamental Effects?

If inventories are growing more slowly than sales, producers will have to make more products so that no shortages occur. Alternatively, if sales growth is slower than inventory growth, there will be an excess of supply, and production should slow in the coming months.

How Does It Affect The Markets?

CURRENCY - Currency traders generally look at the Dollar more favorably if both sales and inventories are rising at the wholesale level.

STOCKS - Reaction is generally muted.

BONDS - Faster than expected growth in inventories can upset bond traders because it adds to GDP growth and can put upward pressure on interest rates. A fall inventory investment subtracts from the economic output, which is positive for bonds.

US Wholesale Sales - What Is It?

Wholesale Sales reports the change in the value of sales at the wholesale level across the US.

What Are The Fundamental Effects?

A company who’s stockroom is filled with unsold goods can quickly find itself in a financial squeeze, especially if the economy starts to weaken.
Retailers with bloated inventories and sleepy sales will cut back or cancel their orders to wholesalers. As a result, wholesalers, fearful that their own stockrooms will start to swell with unwanted products, start to postpone orders to factories.

How Does It Affect The Markets?

CURRENCY - Currency traders generally look at the Dollar more favorably if both sales and inventories are rising at the wholesale level.

STOCKS - There is not much reaction.

BONDS - Faster than expected growth in wholesale sales can upset bond traders because it adds to GDP growth and can put upward pressure on interest rates. A fall in wholesale sales subtracts from the economic output, which is positive for bonds.