US: Business inventories unchanged in September, still offers support to Q3 GDP - Wells Fargo

Analysts from Wells Fargo, point out that business inventories were unchanged in September, but still look to have generated sizeable support to Q3 GDP.

Key Quotes: 

“Business inventories were flat in September as a 0.9 percent decline at retailers was offset by increases at manufacturers and wholesalers.”

“Sales were strong across categories, posting the largest increase of the year at 1.4 percent. That drove the inventory-to-sales ratio down to 1.36 percent. Most of the decline can be traced to the retail sector, where sales rose sharply. 

“The unchanged reading in business inventories followed two months of solid gains which indicates that inventories still offered sizeable support to topline GDP in the third quarter.”