US Wholesale Inventories Plummet to 3-Year Low
The US Dollar fell sharply on Friday following the news that US Wholesale Inventories fell at their fastest rate in 3 years.
US Wholesale Inventories Data
In a report issued by the US Census Bureau, official data showed on Friday that US wholesale inventories dropped more-than-expected in the previous quarter. US Wholesale Inventories declined to a seasonally adjusted annual rate of -0.5%, down from the -0.2% recorded in the preceding quarter whose figure was revised down from 0.2%. The disappointing data sent the US Dollar lower a analysts had been expecting US Wholesale Inventories to decline just -0.1% in the first quarter of 2016.
Slowing US Growth
The 0.5% decline was the largest drop since May 2013 and pointed to a sharper slowdown in economic growth for the first quarter of the year than previously had been thought. Analysts have been generally expecting the US economy to have grown at less than a 1 percent annual rate for the first quarter of the year, a sharp fall from the 1.4 percent rate growth recorded in the final quarter of 2015.
Global Growth Fears
The latest set of of data releases from the world’s largest economy have highlighted the fragility and vulnerability of the US economic recovery. Global growth fears over the US and the Chinese economy, along with Japan’s battle with inflation have caused concern amongst investors with prices of Oil and Stocks posting heavy losses recently.
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