Wednesday, April 8, 2009

Good News Alert! Wholesale Sales Up, Inventories Crash

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:

U.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.



Source: Census