Autos are the sales Energizer bunny. Nothing seems to slow them down. Wholesale Inventories Surprised to the Upside, led by autos.
Wholesale inventories rose 0.5 percent in September following an upward revised 0.3 percent gain in August. The September build appears to be intentional based on a 0.5 percent rise in September sales that keeps the stock-to-sales ratio for wholesalers unchanged at 1.31.
Inventories of autos rose 2.3 percent as wholesalers try to keep up with what is very strong retail demand for autos. Excluding autos, the stock-to-sales wholesale ratio is unchanged at 1.27.
Inventory draws reflecting gains in sales include computer equipment, electrical goods, and apparel. Wholesale inventories of furniture rose on a swing lower for sales.
Inventories in general are heavy and businesses, waiting for a pick up in sales, are being careful to keep them in check. Today’s results are in line with Commerce Department assumptions and should have little bearing on third-quarter GDP revisions.
Reflections on Batteries
At some point batteries die. When that happens to auto sales remains to be seen, but what cannot last forever clearly won’t.
On the personal side, I am headed from Zion to Bryce Canyon National Park for a couple of days.
Mike “Mish” Shedlock