U.S. Wholesale Inventories Rose by 0.5% in September

U.S. wholesale inventories rebounded strongly in September, rising 0.5% after a 0.1% decline in August, according to the Commerce Department's Census Bureau. This increase was led by a surge in stocks of long-lasting manufactured goods, including computer equipment, metals, and electrical products. The rebound will likely lift the country's gross domestic product in the third quarter. The Atlanta Federal Reserve forecasts a 3.5% annualized GDP growth rate for Q3, with the first estimate due on December 23. The economy grew at a 3.8% pace in the April-June quarter. However, the inventory rebound also reflects softening demand, as wholesale sales slipped 0.2% in September. Inventories increased 1.8% year-over-year, with durable goods stocks up 0.3%.