Auto-Industry Over-Production Sends US Inventory-To-Sales To Post-2009 Highs

The 'field-of-dreams' recovery is dismally missing in action. This morning's inventory-to-sales data shows the US total at 1.32x - its highest since the financial crisis and highest in a decade aside from that. The worst sector - or more over-produced or mal-invested - drum roll please... Autos. As the following stunning chart shows, over the last 22 years, the auto-industry has only had a higher inventory-to-sales in the midst of the crisis. If we build it, they might not come... (and aparently they didn't).

Total inventory-to-sales back near ex-crisis highs...

 

led by a total mess in Autos - which aside from the middle of the biggest financial crisis in 100 years, has never been higher...

 

We assume this is great for parking lot sellers and that we will soon see 30-year auto loans to ensure this excess inventory is sold to the lowest common denominator... A Maserati in every garage - remember

 

Charts: Bloomberg