US: Wholesale inventories and consumer credit in focus – Nomura

In view of analysts at Nomura, wholesale inventories and consumer credit data are going to be the key economic releases for today’s session.

Key Quotes

“An advanced estimate showed a 0.4% m-o-m increase in July wholesalers’ inventories with a healthy 0.6% increase from durable goods. After a long period of inventory adjustment, we continue to expect steady inventory accumulation by wholesalers. Inventory investment in H1 2017 was weak but we expect some rebound in Q3 with our current Q3 GDP tracking estimate showing a 1pp contribution to topline real GDP growth.”

“Consumer credit: Consumer credit increased by $12.4bn in June, close to the 6-month average pace but weakened slightly by a slowdown in nonrevolving credit growth, which includes auto loans and student debt. Auto lending standards have tightened recently, likely contributing to the slowdown in the expansion of nonrevolving credit. However, consumer fundamentals remain strong and we expect credit expansion to continue steadily over the medium term.”