While wholesale sales rose modestly MoM, the continued stagnation in wholesale inventories (lowest since 2010) bodes poorly for Q2 GDP. At 1.36x, the wholesale inventories-to-sales remains near record highs, but Automotive inventories to sales soared to cycle highs at 1.83x (as Auto sales dropped 0.7% MoM but inventories rose 1.0% MoM).
The gap remains wide...
Leaving inventories-to-sales near record highs...
As Automotive inventories continue to build as sales collapse...
Either sales must massively surge or inventory destocking (and thus recession-creating production cuts) begins soon.
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