US January business inventories +0.6% vs +0.6% expected
January business and retail inventories
- Prior was +0.4% (revised to +0.6%)
- Retail inventories +0.1% vs +0.3% prior
The inventory build should help to counteract sluggish retail sales in GDP estimates. That said, inventory building is temporary and reverses if it's not met with a pickup in demand so it's a short-term positive but a medium-term neutral development.
As for the market reaction...carry on.