As the saying goes, inventories can't go negative. Thus, at some point these businesses will have to reorder. Especially if sales continue to surprise to the upside.
Per the WSJ:
SalesU.S. wholesale inventories in February fell by the most ever even as sales rose modestly, according to a report that suggested businesses were getting control of their stocks of goods. Wholesale inventories decreased by 1.5% compared to the prior month, falling to a seasonally adjusted $419.34 billion, the Commerce Department said Wednesday.
Inventories fell a revised 0.9% in January; originally, supplies were seen down 0.7%. Sales of U.S. wholesalers climbed by 0.6% in February to a seasonally adjusted $319.73 billion. The last time sales climbed was June 2008, so the increase was a promising sign for an economy that went into recession in December 2007. January 2009 sales fell a revised 2.4%; originally, sales for the month were estimated 2.9% lower.
Inventories
thanks Jake,
ReplyDeletecould you please add the inventory/sales ratio?
it´s the only measure to provide a clear picture of how much further inventories have to fall.
btw: i found this IMF paper (page 6) on Japan pretty interesting.
would be great if you could chart such data for the us.
thank you very much!
GreenAB
here´s the link: http://www.imf.org/external/pubs/ft/spn/2009/spn0905.pdf
ReplyDeleteIt is good news of wholesale sales up... u show this in graph it is very simple to know about ratio of wholesale sales...
ReplyDelete