Today's U.S. reports
Today's U.S. reports revealed a solid round of June wholesale trade figures after big upward May revisions that lifted prospects for GDP, alongside a slightly stronger than expected 0.9% Q2 productivity rise after revisions that paralleled the annual revisions in the GDP and income reports. Analysts now expect a Q2 GDP growth trimming to 2.4% (was 2.3%) from 2.6%, with a $7 B boost in wholesale inventories but downward revisions of $3 B for factory inventories and $9 B for construction. Analysts still expect Q3 GDP growth of 3.3%, with a $26 B inventory addition. Yet, even with today's firm inventory gains, inventories have yet to recover from the big 2015-2016 petro-hit, and wholesale petroleum inventories fell by a hefty 5.2% in June despite a 1.9% sales rise.