Wholesale Inventories Build Most In 3 Years, Signal Q1 GDP Boost

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Wholesale Inventories rose 4.5% YoY in January – the biggest annual build since June 2015 – as it appears the nation’s businesses are embracing the ‘field of dreams’ economy.

The 0.7% MoM rise in inventories is almost double expectations.

This better than expected inventory build will likely force an upside adjustment to Q1 GDP guesses (though Durable Goods disappointment may offset that).

And while we are reflecting on Q1 – is it not somewhat off-putting that inventories surged but orders tumbled in January?