Business Inventories At Highest Level To Sales Since The Crisis

Autos and buidling materials are at their highest levels of inventories relative to sales since the financial crisis leaving overall business inventories-to-sales ratio hovering near cycle highs at 1.40x. A 0.2% rise in inventories (bigger than expected) matched the 0.2% rise in sales MoM but YoY it’s a different picture with sales down 0.3% and inventories up 0.9% (with retailers seeing inventories surging 6.1%).

This will not end well… no matter how high stocks go!