The Commerce Department announced on Thursday the U.S. wholesale inventories dropped 0.3 percent m-o-m in July, worse than the preliminary estimate of a 0.1 percent m-o-m decline.

Economists had forecast the reading to stay unrevised at -0.1 percent m-o-m.

In June, wholesale inventories fell by 1.3 percent m-o-m.

According to the report, durable goods inventories declined 0.9 percent m-o-m in July, while stocks of nondurable goods increased 0.6 percent m-o-m.

In y-o-y terms, wholesale inventories dropped 5.6 percent in July.