Here is an indicator that outside the retail or wholesale trades doesn’t draw much attention. But like the Purchasing Mangers Index (PMI), this is one of those forward looking indicators that can be invaluable in judging the future course of business.
Wholesalers, of course, are an intermediate step in the sales process that starts with the producer, goes to wholesaler, and then onto retail. If wholesalers are holding back on their inventories, as they have been for the last 6 months, it indicates that they are very cautious about future expansion in the economy. May’s report fell in line with that cautious trend, with no change in Wholesale Inventories.
You can see the report here: