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.