What are Wholesale Inventories?
Wholesale inventories are the stock of unsold goods held by wholesalers. Each month the U.S. Census Bureau reports changes in inventory levels and sales by wholesalers. Their position between manufacturers and retailers gives them a clearer look into the economy. It is important to note that inventory figures reported by the Census Bureau are two months old, making it difficult to forecast with.
Why are Wholesale Inventories?
Wholesalers’ position in the supply chain can provide critical insights into the U.S. Typically, when wholesale inventories are high, unsold goods are accumulating because retailers are experiencing weak consumer demand. On the other hand, when stock levels are low for wholesalers, it suggests higher consumer demand. Wholesale inventories are typically used to gauge the potential strength of consumer spending. They can also be used to highlight economic slowdowns or strength.
What should you do?
If you’re looking for an early indicator of consumer spending and economic health, it is important to understand wholesale inventory levels. Majestic’s CORE Report follows wholesale inventories; along with other indicators every week to see where the market stands.