Wholesale Inventories-To-Sales Holds At Recessionary Highs

Tyler Durden's picture

Following an upwardly revised April 0.7% rise in inventories, May saw yet another build (+0.1% MoM) but for once sales outpaced it with a 0.5% MoM gain. However, inventories remain 0.5% higher YoY with sales down 2.5% leaving the inventories-to-sales ration hovering at 1.35x - previous recession highs.

Inventories continue to rise and sales drop...

 

leaving inventories-to-sales at recessionary peaks...

 

Of course Bernanke's helicopter money will fix all this right? Or will corporations front-run the exuberance and overbuild the wrong inventories again?

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Vampyroteuthis infernalis's picture

Nothing to see here...... move along.  

-The Federal Reserve

jamesmmu's picture

Good news for bears,

traders no longer buying calls, vix flat depsite dow surge, means they dont expect stocks to go any higher. Triple tops formed if dow start dropping here. 

 

 

Phillyguy's picture

We are now in the era of Central Bank “controlled” economics. In this brave new financial universe, sales and profits (a direct reflection of demand) no longer matter. The only economic metric of importance is stock price, which is constantly propped up with periodic infusions of ultra-cheap money from the world’s central banks (FED, ECB, BOE, BOJ) for stock buybacks. Apparently, CBs, led by Janet Yellen and the FED, believe they have created the equivalent of an economic perpetual motion machine. What can possibly go wrong?

NEOSERF's picture

Whole lot of disturbing numbers out there across the world but until employment turns over, this market goes higher.

wonderatitall's picture

yeah when i cant get another mcjob im worrying. besides its booooosh's fault

31.103gr's picture

It don't matter! DOW @ ATH! fuck yeah!!

FreeShitter's picture

Fucking A what could possibly go wrong with uncle ben at the helm?

financialrealist's picture

just more proof there is no market, its just a political tool to keep the system from collapsing...collapsing demand, banks allowed to launder money for terrorists, criminals allowed to run for president, 10 trillion in negative bond yields, banks more leverered than Lehman and all time high markets...its all a big joke. 

hendrik1730's picture

Conclusion : sales AND stocks go down at about the same rate. Therefore, the economy is constantly slowing down, only the stock reduction is not big enough to improve the stock/sales ratio.

E.F. Mutton's picture

If Trump does manage to get elected, then they will allow it to drop.

And the media will be 24/7 about "Trump's Recession".  Bet on it.