Q2 GDP In Trouble As Business Inventories Tumble In April

Adding further pain to Q2 GDP hope, April Business Inventories tumbled 0.2% MoM in April (following Wholesale Inventories decline). This is the biggest drop since November 2015.

  • Manufacturers inventories rose 0.1% m/m in April after rising 0.2% prior month
  • Wholesalers inventories fell 0.5% m/m in April after rising 0.1% prior month
  • Retailers inventories fell 0.2% m/m in April after rising 0.2% prior month

The November spike in inventories is now long gone...

 

Inventories-to-Sales stagnated in April but remain in a recession-signalling mode...

 

Not a good sign for Q2 GDP.

Comments

lester1 Wed, 06/14/2017 - 10:20 Permalink

Looks like we're in a recession. We've had 43 million Americans on food stamps since 2009. So if the economy was "growing" shouldn't that number be going down ?? 

Snaffew Wed, 06/14/2017 - 10:25 Permalink

time to buy stocks...the CB's will ramp the shit out of the markets to instill "consumer confidence"....nothing tells a feel good economic story like a bubblicious stawk mocket.

Zorba's idea Wed, 06/14/2017 - 13:01 Permalink

Much of our economy is on wheels. Modern business logistics have refined JIT (just-in-time) inventory replenishment. Perhaps a statistic for how much inventory is in transit (limbo) would give further insight as to how weak our economy is.