Scribd Logo
Upload

Welcome to Scribd!

  • 28 views

    Wholesale Inventories Dec2008

    Uploaded by

    International Business Times
    Wholesale inventories fell for a fourth consecutive month in December – the longest run of consecutive declines in more than five years. The 1.4 percent decline was more than the consensus expected and suggests that wholesalers are doing everything they can to decrease stockpiles even as the decline in sales outpaces the decline in inventories.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd

    Wholesale Inventories Dec2008

    Uploaded by

    International Business Times
    28 views1 page
    Wholesale inventories fell for a fourth consecutive month in December – the longest run of consecutive declines in more than five years. The 1.4 percent decline was more than the consensus expected and suggests that wholesalers are doing everything they can to decrease stockpiles even as the decline in sales outpaces the decline in inventories.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Wholesale inventories fell for a fourth consecutive month in December – the longest run of consecutive declines in more than five years. The 1.4 percent decline was more than the consensus expected and suggests that wholesalers are doing everything they can to decrease stockpiles even as the decline in sales outpaces the decline in inventories.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd
    Download as pdf
    28 views1 page

    Wholesale Inventories Dec2008

    Uploaded by

    International Business Times
    Wholesale inventories fell for a fourth consecutive month in December – the longest run of consecutive declines in more than five years. The 1.4 percent decline was more than the consensus expected and suggests that wholesalers are doing everything they can to decrease stockpiles even as the decline in sales outpaces the decline in inventories.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd
    Download as pdf
    You are on page 1of 1

    Tim Quinlan, Economic Analyst

    [email protected] ● 704-374-4407

    February 10, 2009

    Wholesale Inventories Fell 1.4 Percent in December


    Wholesale inventories fell for a fourth consecutive month in December – the longest run of consecutive declines in
    more than five years. The 1.4 percent decline was more than the consensus expected and suggests that wholesalers
    are doing everything they can to decrease stockpiles even as the decline in sales outpaces the decline in inventories.
    Inventories are Falling, But not as Fast as Sales Inventory-to-Sales Ratios
    • This is the latest evidence of the difficult environment for • The result is an inventory to sales ratio that is climbing at a
    business spending in Q4. Demand has all but vanished and startling rate. Further production cuts seem likely.
    businesses are scrambling to right-size their inventories. • Automotive inventories rose 1.7 percent in December, as sales
    • While wholesalers are trying to pare back inventories, sales fell 8.1 percent reflecting the ongoing struggles in the sector.
    have cratered in recent months and are falling at an even Inventory-to-sales ratios are skyrocketing, suggesting
    faster rate than inventories. unintended inventory build.

    Wholesale Inventories Inventory-to-Sales Ratio


    Month-over-Month Percentage Change Wholesalers
    1.8% 1.8% 1.40 1.40

    1.5% 1.5%
    1.35 1.35
    1.2% 1.2%
    1.30 1.30
    0.9% 0.9%

    0.6% 0.6% 1.25 1.25


    0.3% 0.3%
    1.20 1.20
    0.0% 0.0%

    -0.3% -0.3% 1.15 1.15

    -0.6% -0.6% 1.10 1.10


    -0.9% -0.9%
    1.05 1.05
    -1.2% -1.2%
    Inventories: Dec @ -1.4% Ratio: Dec @ 1.27
    -1.5% -1.5% 1.00 1.00
    2003 2004 2005 2006 2007 2008 93 95 97 99 01 03 05 07 09

    Wholesalers' Inventories & Sales Inventory-to-Sales Ratio


    Year-over-Year Percent Change -- 3-Month Moving Averages Automotive Wholesalers
    20.0% 20.0% 2.40 2.40
    2.30 2.30
    15.0% 15.0%
    2.20 2.20
    2.10 2.10
    10.0% 10.0%
    2.00 2.00

    5.0% 5.0% 1.90 1.90


    1.80 1.80
    0.0% 0.0% 1.70 1.70
    1.60 1.60
    -5.0% -5.0%
    1.50 1.50
    1.40 1.40
    -10.0% -10.0%
    Inventories Yr/Yr % Chg: Dec @ 5.7%
    1.30 1.30
    Sales Yr/Yr % Chg: Dec @ -5.4% Ratio: Dec @ 2.31
    -15.0% -15.0% 1.20 1.20
    93 95 97 99 01 03 05 07 09 93 95 97 99 01 03 05 07 09

    Wachovia Corporation Economics Group publications are distributed by Wachovia Corporation directly and through subsidiaries including, but
    not limited to, Wachovia Capital Markets, LLC, Wachovia Securities, LLC and Wachovia Securities International Limited.
    The information and opinions herein are for general information use only. Wachovia does not guarantee their accuracy or completeness, nor
    does Wachovia assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such
    information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation
    with respect to the purchase or sales of any security or as personalized investment advice. © 2009Wachovia Corp.

    You might also like