US: Wholesale inventories likely to post 0.3% m-o-m rebound – Nomura

In May, the advance report on top-line wholesalers’ inventories indicates a 0.3% m-o-m rebound after a 0.4% decline in April, according to the analysts at Nomura.

Key Quotes

“Weak petroleum product inventories have been a drag on aggregate wholesalers’ inventories so far in Q2. Energy commodity prices have been trending lower in recent months, which lowered the nominal value of petroleum product inventories.”

“Durable goods inventories posted a decent 0.4% increase, but nondurable goods inventories gained only modestly by 0.1%. Although a substantive revision is unlikely, it is possible that nondurable goods inventories growth remained weak due to a continued drag from petroleum product inventories.”