Wholesale inventories up in JuneThe 1.1% gain was much stronger than expected, fueled by higher prices for oil and other commodity goods. But wholesale sales shot up 2.8%, the biggest gain since March '04. Price-driven petroleum sales posted their biggest monthly gain -- 12.7% -- in 6 years. Overall, the inventory-to-sales ratio fell to a record-low 1.06 months, as firms made sure they didn't overstock shelves and warehouses.
Italy's economy shrank in Q2
The euro zone's No. 3 economy fell 0.3% vs. Q1, possibly setting the stage for a contraction for the entire 15-nation zone. Italy's GDP was flat vs. a year earlier, the worst showing since Q3 '03. Eurostat will publish its flash GDP estimate for the 15-nation bloc as a whole on Aug. 14. The GDP data is likely to reinforce market expectations that the European Central Bank will not raise rates again this year. The ECB said Thu. that risks to economic growth were starting to materialize.
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