US: Expect only modest growth in wholesale inventories - Nomura

Analysts at Nomura note that US wholesale inventories increased a modest 0.2% m-o-m in December after increasing 0.7% in November, according to the advance estimate by the Census Bureau.

Key Quotes

“The strong increase in November was in part driven by a sharp increase in petroleum prices, which could revert in December. According to the BEA’s advance estimate of Q4 GDP, inventory investment was soft in Q4 following a strong contribution to GDP growth in Q3. Consistent with this report, we expect only modest growth in wholesalers’ inventories in Q4.”