Zero Hedge
All posts from Zero Hedge
Zero Hedge in Zero Hedge,

Business Inventories Surge Most In 29 Months, Sales Ratio Signals Recession Imminent

Total business inventories for June rose 0.8% MoM - the biggest rise since Jan 2013. Great news for Q2 GDP as we stacked 'em high, but as sales lagged dramatically, the inventory-to-sales ratio hit a new post-crisis high at 1.37, flashing a very recessionary level going forward (dampening hype hope for Q3 GDP). Once again it was autos that saw the biggest relative jump in inventories (+1.4% MoM) relative to sales (-1.5%).


Inventories exploded in June...


With the sales ration flashing burght red recessioanry signals...


Charts: Bloomberg