Record Gap Between US Inventories And Sales Screams Recession…(Depression!)
by Tyler Durden
ZeroHedge.com
09/10/2015
The Wholesale Inventories-to-Sales ratio has now been stuck deep in recession territory since January as the mal-investment boom-driven deflation-beckoning dream of “if we build it they will come” inventory surges smashes into the ugly reality of peak-debt-based lack of consumption worldwide. Inventories dropped 0.1% in July (notably lower than the 0.3% rise expected and the biggest drop since May 2013), but worse still Wholesale Sales tumbled 0.3% (missing expectations of a 0.1% rise). So inventories dropped (bad for Q3 GDP) and sales dropped more (even worse) leaving July’s 1.30x inventories-to-sales ratio remains a flashing red beacon of over-capacity and looming production cuts (especially in Automakers).
The Rest…HERE
