Wholesale Inventories Down

The Commerce Department reported that stocks at U.S. wholesalers plummeted 1.7% in June, the tenth straight monthly drop, which drove inventories to their lowest level in more than two years. The magnitude of the drop in inventories from May was nearly double the 0.9% decline analysts polled by Reuters had expected. May’s drop was revised to 1.2% from the originally reported 0.8%.

Businesses have been trimming inventories over the year. In June, wholesalers’ stocks stood at $393.93 billion, the lowest level since $393.49 billion in January 2007. Durable goods, which make up nearly two-thirds of wholesale inventories, were down 1.5% in June, while their sales were up 0.7%.