June was supposed to be the month of second-derivative beats in economic data, reaffirming the manic bid in stocks. For Wholesale Inventories it was not.
Against expectations of a rebound from a 1.2% drop in May to a 0.5% drop in June, wholesale inventories actually tumbled 2.0% MoM, the worst since the peak of the great financial crisis...
On a YoY basis, wholesale inventories are down 6.1%, less than at the peak of the great financial crisis...
Specifically, Durable Goods inventories fell 2.1% MoM (worsening from June) and Non-durable goods inventories dropped 1.7% MoM (vs unchanged in May).
Motor Vehicle & Parts Dealers inventories fell 6.8% MoM.
Retail inventories also tumbled 2.6% MoM in June (but that did slow the collapse from May).
And this data has a direct impact on GDP, suggesting the hoped-for recovery is far from certain... and in fact may be getting worse.