Highlights
Inventories at wholesalers may be backing up in what could be an early signal of overhang in the supply chain. Wholesale inventories jumped 1.4 percent in July while sales at the wholesale level contracted for only the second time this year, down 0.3 percent to push the inventory-to-sales ratio 1 tenth higher to 1.07. Inventories of durables goods jumped 1.6 percent led by machinery in what may be a bad sign for business investment and by autos in what is a bad sign for the consumer sector. Sales of autos fell 1.4 percent in the month, pushing the inventory-to-sales ratio to 1.68 for a 6 tenth gain from June and to the most bloated level in nearly 21 years. Inventories of non-durables, up 1.1 percent, showed increases in chemicals, drugs and petroleum.

Inventory growth is one of the most unwanted side-effects of an economic slowdown, as it reduces the need for output and lowers demand for labor. Inventories at factories also rose in July, up 0.5 percent. Retail inventories for July will be posted on Friday with the business inventories report.

2008 Release Schedule

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