March Wholesale Inventories Surge In Boon To Negative Q1 GDP, Bust To Q2 GDP Forecasts

Tyler Durden's picture


Wall Street has a problem. In all their excitement about how terrible Q1 was - and ths how awesome Q2 and beyond will be - it forget to check in with the firms that were busily stacking inventories in their snow-covered factories around the nation. Wholesale inventories rose 1.1% in March (which is still in Q1 remember) - smshing expectations for the 3rd month in a row (all in Q1 remember) and the 2nd biggest spike in 2 years. Each time we have seen such a spike, the following months saw a notable decrease. Desk chatter is already of a 0.3% boost to Q1 GDP and a 0.2% cut to Q2 GDP - just as hope was getting going once again.



If we build it - they might come - or we'll leave it on dealership floors... and stop stacking.

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Fri, 05/09/2014 - 10:16 | 4743185 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Hope and Change bitches

Fri, 05/09/2014 - 10:17 | 4743191 Eyeroller
Eyeroller's picture

Hope and Change ponzi scheme.

Fri, 05/09/2014 - 10:52 | 4743323 Headbanger
Headbanger's picture

Attention Wal Mart shoppers..

Please come back!

Fri, 05/09/2014 - 10:18 | 4743193 oklaboy
oklaboy's picture

let's get those forklifts warmed up..

Fri, 05/09/2014 - 10:19 | 4743196 DavidC
DavidC's picture

Bunch of fuckwits. How the hell can INVENTORY be an indicator of ACTIVITY?! The floors might be full of product but if it isn't SOLD then it means nothing!

Pathetic, absolutely pathetic.


Fri, 05/09/2014 - 10:23 | 4743211 Kaiser Sousa
Kaiser Sousa's picture

interesting how every move to the downside on the Dow is met with an abrupt surge upward, while meanwhile the paper Gold and Silver prices after being takin down on NO justifiable data at all just trade sideways day after day....

yeah, right........

Fri, 05/09/2014 - 10:26 | 4743225 DavidC
DavidC's picture

Depending upon your semantics, the word is either 'rigged' or 'manipulated'.

Although Mary Jo White might disagree.


Fri, 05/09/2014 - 10:34 | 4743224 Smegley Wanxalot
Smegley Wanxalot's picture

And here I thought materials and goods couldn't be delivered in cold winter weather, and that Swedish factories and stores are thus always empty.

BTW, if this is a 0.3% boost to Q1, then "inventory-neutral" Q1 is negative 0.2% already, and that assumes that inflation is as bullshittedly low as the govt reports.  Knowing it is annualized at least 4% higher than the bogus official stat, Q1 was at best minus 1.2%, and given population growth occured YoY, more likely minus 2% on a per-capita basis.

Fri, 05/09/2014 - 10:34 | 4743250 Dr. Engali
Dr. Engali's picture

Rumor has it that the next Keynesian project is to turn Detroit into one big parking garage in order to channel stuff for the next ten years of non-recessionary growth that BofA is babbling on about.

Fri, 05/09/2014 - 10:40 | 4743278 fonzannoon
fonzannoon's picture

There are empty lots by me filling up with dealer cars. If someone could get the satellite image of Belmont raceway parking lot they will see thousands of dealer cars just sitting there. I wonder how the hell they get those cars out of there prior to the race.

Fri, 05/09/2014 - 11:05 | 4743385 Aknownymouse
Aknownymouse's picture

Economic measures are so obsolete. We should just cancel because some of them might be hard to dpin as bullish. Lets just have Mr Chairwoman talk to the market every morning and before market close to keep us all calm at all times. Who is with me?

Fri, 05/09/2014 - 11:26 | 4743483 SheepDog-One
SheepDog-One's picture

For fucks sake....back in 2008 these assholes were saying while things suck this quarter, just give us till next Q and it will all be good again, just keep bailing us out with the free money....still the same line 6 years later?

Fri, 05/09/2014 - 11:35 | 4743533 Spungo
Spungo's picture

We can't change the change but we can still hope for hope.

Fri, 05/09/2014 - 12:11 | 4743686 Patriot Pete
Patriot Pete's picture

I hate this market, I hate the algos, I hate this government control of everything. I hate the lawlessness. Anyone have the directions to Galt's Gulch?

Fri, 05/09/2014 - 12:44 | 4743806 TickTickTick
TickTickTick's picture

Yep, just take a left turn at Albuquerque

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