It's
been weak reporting for U.S. economic data and business inventories are
no exception. Inventories rose an unwanted 0.1 percent in December
against a 0.4 percent decline for sales in a mismatch that drives the
stock-to-sales ratio from 1.39 to 1.40 for the fattest reading of the
whole cycle, since May 2009. Inventories fell for factories but rose for
wholesalers and also for retailers. Sales, however, fell for both
retailers and especially for wholesalers. Heavy inventories are a
negative for future production and future employment and today's report
points to slowing for both during the first quarter.
Recent History Of This Indicator:
Business inventories have been flat but not flat enough relative to
sales which have been declining. Unwanted inventories are negatives for
the production and employment outlooks.
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