Connect with us

Business

Slowdown Of The US Business Inventories On Second Quarter GDP

A reliable source stated that in June, inventories of the United States businesses were flat. In addition to this, it is also being informed that organizations not belonging to auto industry of the country curtail their restocking that is believed to weigh against estimation of the economic growth in the second quarter of the current year.

Slowdown Of The US Business Inventories On Second Quarter GDPIn a press conference held on Tuesday, the spokesperson of the Commerce Department stated they found no sign of change in overall inventories during the month of June. However, it is revealed that Economists poll conducted by Reuters had predicted that there would be very little change in overall inventories. They forecast that overall inventories in the month of June might rise to 0.2 percent in the month.

It is worth to mention over here that critics considered inventories as one of the major components to create a change in gross domestic product, popularly known as GDP. According to the report of Commerce Department, retail inventories enlisted in the calculation of the gross domestic product dropped off by 0.1 percent in June after getting higher by 0.2 percent in the month of May. The spokesperson added that it is remarkable to note that in this case auto industry does not include in retail inventories.

In the report, it is also stated that in most of the sectors the inventories were down. Such establishments include food stores, clothing, department stores and many more. It is significant that in the last month the government provided an early estimation of April to June period for gross domestic product. The estimate report revealed the growth at a 1.7 percent yearly rate during the period.

However, it is significant to note that overall business sales in June increased 0.2 percent. At the same pace of June, it is assumed that businesses would require 1.29 months to clear up their shelves or stocks.

As being suggested in the report, the inventories have given much less boost in the second quarter of the year’s economic growth than it was estimated initially by the relevant department. The report also suggested that business organizations are becoming cautious about restocking as they viewed the backdrop of monotonous domestic demand.

Market economists expected that personal consumption would raise 1.6 percent after the advancement of 2.6 percent on the first quarter of the year. Sequestration of the federal budget earlier this year and a blow in spending of the customer are considered as the factors of this slowdown in growth.

In a recent report, a team of economics at BofA Merrill Lynch disclosed that they found the clients responded with a lag and this led them to predict that real consumption growth of the second quarter would be 1.8 percent in comparison to the 2.6 percent profit in the first quarter.

Aneta Markowska and Brian Jones opined that they hoped that the Bureau of Economic Analysis reported that the inflation adjusted business performance would expand by a trivial 0.4 percent annualized in second quarter.

Continue Reading

Recent Posts

Autos4 days ago

In a Car Accident? Here’s How to Find a Great Lawyer

If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...

Education5 days ago

Considering Therapy? Here’s a Few Common Therapy Techniques Explained

If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...

home repairs home repairs
Home Improvement6 days ago

Top 5 Home Repairs You Should Never DIY

DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...

Health2 weeks ago

The Power of CBD Oil for Relaxation: How to Use it for Sleep and Stress Relief

If you’re struggling to get a good night’s sleep or feeling stressed, try CBD oil. CBD oil has a moment...

General2 weeks ago

Benefits of Getting your Mobile Phone Repair

Mobile phone repair is a task that needs high skills and experience. That is why we always recommend users trust...

Home Improvement2 weeks ago

Great Ways To Clean To Get Your Security Deposit Back In Full

Moving is almost always stressful as there are tons of things to plan and do. Getting your security deposit back...

Home Improvement3 weeks ago

DIY Garage Door Repair: Tips and Tricks for Fixing Common Problems and Maintaining Your System

If your garage door needs to be fixed, wait to call a repairer. Many common problems can be fixed quickly...

Education4 weeks ago

7 Tips to Choosing the Right University for You

Are you considering continuing your education at university? If so, it can be overwhelming to decide which school is right...

Finance1 month ago

3 Ways Loans from Credit Unions Are Different From Major Banks

If you’re in the loan market, you may wonder if a credit union is the right choice. Here are three...

Food1 month ago

The World of Coffee: Exploring the Aromas, Flavors, and Benefits of the World’s Most Popular Beverage

Coffee is one of the world’s most popular beverages, enjoyed by people of all ages and backgrounds. It’s also one...

Education2 months ago

New Driver? 5 Things to Consider When Looking for Driving School

When it comes to choosing a driving school, there are many factors to consider. Not all driving schools are created...

Home Improvement2 months ago

Landscape Irrigation Systems: The Basics

If you’re a homeowner, you know that keeping your lawn and landscaping looking nice can be a lot of work....

Travel2 months ago

5 Things to Look for in Luxury Hotels

When it comes to luxury hotels, there is a lot to look out for. Here are five key things that...

Home Improvement2 months ago

Is There a Difference Between Commercial and Residential Concrete?

If you’re a contractor, you know that concrete is a versatile construction material. But did you know that there are...

Law2 months ago

5 Tips to Find the Right Litigation Firm

When it comes to selecting the right litigation firm for your legal needs, choosing wisely is of utmost importance. It’s...

Categories

Archives

Trending