For the 3rd month in a row , wholesale inventories dropped year-over-year (tumbling 0.4% MoM in October, the most since February) casting modest shadows on the Q4 GDP hope. Sales surged however, jumping 1.4% in October (double the 0.7% increase expected). Overall this reduced the critical inventories-to-sales ratio but it remains at notable cyclical highs.

The 3rd monthly decline in inventories YoY will not help GDP but wholesale sales surged most since Oct 2014…

Pushing inventories to sales lower – but still in notably recessionary territory… 

The big question remains, what happens when the China credit impulse/US Govt spending flourish fades.