how wholesale trade data is used
wholesale trade data gives investors a closer look at the consumer economy as wholesalers sales and inventory numbers can be a leading indicator of consumer trends by looking at the ratio of sales to inventories investors can see whether or not production may grow or slow in the future for example if inventories are growing more slowly than sales producers will have to make more product so that no shortages occur alternatively if sales growth is slower than inventory growth there will be an excess of supply and production should slow in the coming months because manufacturing is such a large part of gross domestic product gdp the wholesale trade data can be a valuable tool for keeping a finger on the pulse of the economy equity markets are positively affected by an increase in production as corporate profits tend to increase the bond markets on the other hand prefer moderate growth so as to stem inflation 