Business inventory reports shows total U.S. business sales and inventories. This report includes total current-dollar sales and inventories used for the wholesale, retail, manufacturing, and wholesale sectors of the economy.
Importance:
Investors analyze retail inventory numbers as they indirectly affect interest rates. The rising inventories mean that economy is growing at very slow pace and it means that government has to decrease interest rates. This also means that dollar will remain bearish in the near future. However, dollar is considered bullish when inventories and sales are rising fast at various manufacturing, wholesale and retail level.
Background:
The list of items added in “The Business Inventories Report” includes manufacturing, wholesale, and retail inventories . All three inventory components are included in the overall inventory component report submitted by the government of United States of America.
Business inventories report consists of important information about the retail market. Therefore, it causes few ripples within inventory market. In addition, this report can affect the gross domestic product and overall outlook of the economy of the country. Since, it creates a small market reaction from retail investors. Occasionally however, retail inventories do swing far enough to affect changes to the aggregate inventory profile which may affect the GDP outlook. The sales figures contained in this report are forward looking and they depict lots of information about personal consumption. The information included in Business Inventories is very useful to market economists as they can use it to advise other market participants.
Source:Census Bureau Department of Commerce
Availability:It is released at 8:30 am EST six weeks after the month ends. For example, data for June is reported in mid August.
Frequency:Monthly.
Links:Business Inventories – http://www.census.gov/mtis/www/mtis.html