U.S. Wholesale Inventories Drop in September

WASHINGTON (Reuters) – U.S. wholesale inventories saw a significant decline in September, primarily due to a sharp decrease in motor vehicle stocks.

The Commerce Department's Census Bureau reported on Thursday that wholesale inventories fell by 0.2%, revising the earlier estimate of a 0.1% dip. In August, stocks at wholesalers had increased by 0.2%. Economists surveyed by Reuters had anticipated the inventory drop would remain unchanged at 0.1%.

On a year-on-year basis, inventories rose by 0.3% in September. Notably, wholesale motor vehicle inventories decreased by 1.7% following an earlier 0.3% increase in August.

Private inventory investment posed a minor drag on GDP during the third quarter, with the economy growing at a 2.8% annualized rate between July and September.

Sales at wholesalers rose by 0.3% in September, following a 0.2% gain in August. At the current sales pace, it would take wholesalers 1.34 months to clear their shelves, a slight decrease from 1.35 months in August.