The US wholesale inventories for the month of April rose by 1.1% vs. 0.6% expectations. Wholesale trade sales were also stronger 1.3% vs. 0.9%. The prior month was revised higher to 1.6% from 1.4% originally reported. The inventory to sales ratio remained steady at 1.8 months.
In Q1 inventories subtracted 1.62% from GDP (GDP fell by -1.0% in Q1). A rise inventories, like we saw today, should be a positive for 2nd quarter GDP. This should be positive for the US dollar.
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