Q4 GDP Shocker - Wholesale Inventories Unexpectedly Plunge In October

Tyler Durden's picture

Against expectations of a 0.4% MoM rise - supporting continued growth in GDP into the fourth quarter - October saw a 0.4% plunge in wholesale inventories.

After five straight months of building inventories, October saw a big GDP-stunting slump...

The biggest drop was in Motor Vehicles & Parts Dealers which saw a 1% drop in October following a 2.4% decline in September.

We suspect Goldman, Atlanta Fed, and New York Fed GDP forecasts will slump for Q4 after this big disappointment.

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GunnerySgtHartman's picture

Lies, damned lies, and statistics.

onthedeschutes's picture

Plug in the desired narrative and then solve for wholesale inventory MoM change.  Presto!  

gmak's picture

/ES is popping a bit. Must be bullish. (snicker). 

Pool Shark's picture

"The biggest drop was in Motor Vehicles & Parts Dealers which saw a 1% drop in October following a 2.4% decline in September.."

Well, duh!

Hurricane-damaged car replacement anyone?

starman's picture

I drive through a small town quiet often on my business trips where Chevy and GM trucks are "decorated" with 5000 to 10000 off dealer price stickers! 

It's been going on for 7-8 months. No buyer's yet.

givadam's picture

Is 0.4% a "plunge"?

A. Boaty's picture

Thinking about falling for clickbait? Read this first...

MuffDiver69's picture

Weird..We had near record car sales after hurricanes and a month later inventories plunge..Business has loaded up for the massive sales last four days and holidays as product doesn’t fall out of sky and .......

SDShack's picture

Record car sales after hurricanes is only relative in hurricane ravaged areas of the country, which are actually in very isolated pockets. The car companies use the disaster headlines to spin the record sales to try to promote the growth of the industry. But the bottom line impact is minimal when you offset the "positive" hurricane impact in a relative fraction of the country versus the lackluster car sales throughout the vast majority of non-hurricane damaged country. Much like real estate, there is almost always a "hot market" somewhere, even in the midst of a overall market sell-off. So the aggregate numbers showing auto sales plunge sounds correct.

Bemused Observer's picture

All the mindless yabbering about self-driving cars is not going to encourage folks to go out and buy something that they think might become obsolete in a few years.

Of course it helps to actually HAVE the technology ready to go instead of just talking about it.

 

Be funny as shit if the existing car industry takes a fatal hit after several years of low sales because everyone is waiting for the self-driving models. And then it turns out that those models don't actually exist yet, and none of the bugs have been worked out...Sure, it could revive the car industry to suddenly have to make regular cars again, but I'm thinking that market will probably have already been captured by one of the other manufacturers.

In 30 years, we import ALL of our vehicles.