Cutback in Inventories Provides Stage for Future Growth

by devteam September 15th, 2009 | Share

Manufacturing inventories were slashed once again in July, but in the process one significant item was constructed: a stage for future growth. 

Inventories were cut by 1.0% in July, the 11th straight decline, pushing the annual decrease to 11.8%. That cutback is slightly more than economists were forecasting, but it’s a slower contraction than the revised 1.4% reduction in June.

Cutbacks to inventories indicate executives are clearing overhang in anticipation of soft orders, which doesn’t bode well for overall growth. However, this data is from July, while this morning’s 2.7% surge in retail sales â€

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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