As sales are falling faster than inventories, the current level of inventory on hand is increasing relative to sales. In fact this measure increased almost 17.5% from a year ago. This means there is less need for a businesses to reorder (there is already plenty in their inventory), which means new orders, although already awful, are likely to get worse going forward. http://econompicdata.blogspot.com/2009/01/inventory-sales-ratio-spikes.html
I've never met a retarded person who wasn't smiling.
How, exactly? I just can't envision a scenario where products start flying off the shelves within the next few months. Save hyperinflation, which seems out of favor given all the current conditions.
Perhaps, but I dunno. Can you elaborate?
I've never met a retarded person who wasn't smiling.
factory orders and inventory reports are no doubt a key economic release but these reports have always been viewed as contributory as it relates to the grand scheme of things...these types of reports are helpful in either affirming your view or disputing your arguments...they are viewed in this regard because the data is a snapshot at that specific point in time...i say the data is so fickle because there's too much in outside intervention that can sway these numbers in such a short, quick time....seasonal affects, labor rifts, commodity pricing, weather related anomalies, etc.
the relationship that factory orders/business inventories has with retail sales would be akin to comparing housing starts with home sales if that make sense....indeed - housing starts is a good barometer of how healthy the housing market is but home sales is what steers us all.
