In its release of today’s Q3 GDP figure, the Bureau Economic Analysis said farm inventories subtracted 0.42 percentage point from the change in private inventories.
That in turn took 0.12 points off the total GDP number.
The hit was almost certainly the result of the drought, as Bloomberg economics editor Linda Yueh Tweeted:
That farm inventories change was also the biggest drop-off for farm inventories since at least 2009 (the date for the first number in this chart):
Nonfarm inventories added 0.30 percentage point to the overall inventory tally.