Monthly U.S. wholesale inflation held steady in September, while continuing to decelerate year-over-year.
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Monthly, September's modest increase matched that of August and July.
August inventories increased year-over-year, while remaining unchanged from July.
The survey reveals rising costs and tightening profit margins, highlighting trends in warehouse pricing and labor expenses from 2022 to 2024.
The August decrease followed a healthy 4.9% increase in July.
Our EOR serves as a comprehensive economic reference guide to the $8 trillion U.S. wholesale distribution industry and its 19 different sectors.
The report indicates continued economic uncertainty as demand weakens and contraction persists across many manufacturing sectors.
Despite a 4.1% increase year-over-year, August spending declined month-to-month.
Associations reported financial optimism, with a growing focus on technology investment and adaption to market challenges.
A solid but unspectacular volume month featured the news of two top electrical distributors combining.
August orders remain virtually unchanged, following a substantial 9.9% increase in July.
September's Consumer Confidence Index decreased to the lowest level since August 2021, reflecting consumer concerns about the labor market.
Some surveyed distributors remain cautious due to high interest rate, inflation, poor economy and a general slowing of business.
The Fed cut interest rates by 50 basis points, expressing confidence that rates are moving toward the 2% target.
August saw a rise in production, driven by gains in manufacturing and mining, while utilities held steady month-to-month.
Wholesale trade profits surged in 2Q sequentially but fell year-over-year
The monthly report adds more fuel to consensus expectations of a long-awaited federal interest rate cut on Sept. 18.
Month-to-month, the revenue outlook for 2024 improved modestly, while 2025’s had a healthy increase. See those figures plus an updated GDP forecast here.
Meanwhile, inventories continued to rise in July, reflecting a steady increase as sales showed a monthly and YoY rebound from June.
