Amidst Fed yapping about a September rate hike comes disappointing news from the census bureau on wholesale trade and inventories.

Month-over-month and year-over-year sales are down. The inventory-to-sales ratio rose.

Wholesale Sales

• Wholesale Sales -0.4% in July from revised June level
• Wholesale Sales in June revised from +1.9% to +1.7%
• Wholesale Sales -1.0% from July 2015
• Durable goods +0.2% in July from June
• Durable goods +0.7% from July 2015
• Nondurable goods -1.0% from June
• Nondurable goods -2.6% from July 2015
• Petroleum -3.5% from June
• Alcoholic beverages -2.5% from June

Wholesale Inventories

• Inventories unchanged in July from revised June level
• Inventories +0.5% from July 2015
• Durable goods +0.3% in July from June
• Durable goods -1.8% from July 2015
• Nondurable goods -0.3% in July from June
• Nondurable goods +4.3% from July 2015

Inventory-to-Sales

An inventory build could happen, but the inventory-to-sales numbers do not support the idea.

Mike “Mish” Shedlock