Second-quarter economic growth estimates are being scaled back following Friday’s announcement by the Commerce Department that wholesale inventories dropped 0.2% in June after falling 0.6% in May.
That means the government’s already anemic 1.7% annual growth forecast may be revised even lower.
Economists trimmed their second-quarter GDP growth estimates by one-tenth of a percentage point based on the “unexpected” news.
Wholesale inventories are considered a vital fact in determining GDP shifts.
June marks the third month of wholesale inventory declines, the longest string in nearly four years.