The Traderszone Network

Published in TZ Latest News 10 July, 2015 by The TZ Newswire Staff

Here Is The Flashing Red Light In The Inventory-Sales Ratio

Recession watchers stay tuned… Wholesale Sales rose a mere 0.3% MoM (missing expectations of a 0.9% rise) but sales tumbled 3.4% YoY – the most since the financial crisis. Hopers will look at the rise in inventories (+0.8% MoM vs +0.3% exp.) as GDP positive but at some point the hope for a sales pick up fades and inventory stuffing stops (Sales -3.4% YoY, Inventories +5.0% YoY). But what should be worrying everyone right now is the inventory-to-sales ratio holding at recession levels.

 

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