GDP Hope Fades As Wholesale Inventories Tumble Most In 8 Months

Tyler Durden's picture

For the 3rd month in a row , wholesale inventories dropped year-over-year (tumbling 0.4% MoM in October, the most since February) casting modest shadows on the Q4 GDP hope. Sales surged however, jumping 1.4% in October (double the 0.7% increase expected). Overall this reduced the critical inventories-to-sales ratio but it remains at notable cyclical highs.

The 3rd monthly decline in inventories YoY will not help GDP but wholesale sales surged most since Oct 2014...

 

Pushing inventories to sales lower - but still in notably recessionary territory...

 

The big question remains, what happens when the China credit impulse/US Govt spending flourish fades.

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rccalhoun's picture

wholesale inventories dropped because sales surged.  hike rates 100 bp today!   dow 30000

Hope Copy's picture

Could happen or Christmas could end with a buyer's crash.. This need a longer term weighting to base a solid conclusion on.. PLACE YOUR BETS LADIES AND GENTLEMEN

Hohum's picture

But a high inventories/sales ratio means recession.  This is great news!

FuckJanetYellen's picture

Another pointless Zerohedge headline.  You guys are pathetic.

BabaLooey's picture

...so says someone that wants to fuck Janet Yellen.

arrowrod's picture

Count me in.  I've been married 30 years.  What does fuck mean?

Hal n back's picture

good to see a sense of humor--it is humor, right?

spastic_colon's picture

don't worry final GDP will come in at 3.0000000000000000000000000000000000000000000000001

tarsubil's picture

That would be awesome if that was the official number as Obama orders a 3+ number. Well, fine, you black faggot! 3.(a million 0s)1

Hohum's picture

Adding faggot is a nice touch.  Very classy.  Now go back to scratching your balls.

tarsubil's picture

It is officially not official that our non-recession recession is not over, over.

ajkreider's picture

LOL.  ZH been pounding away at the sales/inventories ratio for what, 3 years.  Now we get that cross and Tyler still complains.

silverer's picture

So, consumer confidence soars based on....??

MD's picture

Looks like the inventory to sales ratio has been improving over the past year. Looks like the peak, which indicates recession, is behind us.

The bear market was late last year, and everyone here missed it.

katchum's picture

Looks like the economy is improving, earnings are 15% higher next year.

NEOSERF's picture

And even if they are down 15%, the DOW will be up 22% so let's not waste a lot of time on those silly numbers..

Hal n back's picture

permanent PE multiple expansion.

StreetObserver's picture

Trump supporting merchants are selling down their inventories and refusing to order or pay for anything new until Trump's term starts and he can get the credit for the spending surge.

Weaponize your spending.

"OBOYCOTT"