Wholesale Inventory Ratio, Sales Stabilize At Recessionary Levels

Despite continued slowing in the pace of inventory builds in the past few months, the ratio of inventory-to-sales remains mired in a recessionary quagmire; but today's data showed some hope - which stocks hated. Inventory-to-Sales dropped from 1.30 to 1.29 (still recessionary) as Wholesale Inventories rose 0.4% (againmst +0.2% expectations) and Wholesale Sales rose a notable 1.6% (against expectations of a 0.6% rise). YoY Wholesales Sales remain in negative territory however and confirm the recessionary warning that the ratio is sending.

 

Inventories rose...

 

But sales surged...

 

Leaving Wholesale Inventory-to-Sales modestly iomproving but remaining mired in recessionary environment....

 

Charts: Bloomberg