Friday, December 12, 2008

Inventory to Sales Ratio on the Rise

Although inventories are in some cases down year to year, the 'Inventory to Sales' ratio has increased rather dramatically in recent months across retail outlets.

What does this mean for the economy? Nothing good... while consumption has been down in recent months, production facilities have been running, which is good for the economy. Pretty soon those inventory orders will not need to be replenished, putting another strain on the economy.

Source: Census

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