This Won’t End Well – Business Inventories Signal Recession Imminent

Autos & parts inventories-to-sales ratios soared to 2.30x from 2.18x – levels that have only been higher during the financial crisis. This, combined with a rise in clothing inventories to sales, held overall business inventories at their highest to sales since the crisis and deep in pre-recessionary territory.

Retail inventories rose 1.0% MoM despite a 0.3% drop in sales (with motor vehicles inventories up 2.3% as sales tumbled 3.2%) leaving the inventories to sales ratio at cycle highs…

Simply put, this won’t end well.