Wall Street has a problem. In all their excitement about how terrible Q1 was – and ths how awesome Q2 and beyond will be – it forget to check in with the firms that were busily stacking inventories in their snow-covered factories around the nation. Wholesale inventories rose 1.1% in March (which is still in Q1 remember) – smshing expectations for the 3rd month in a row (all in Q1 remember) and the 2nd biggest spike in 2 years. Each time we have seen such a spike, the following months saw a notable decrease. Desk chatter is already of a 0.3% boost to Q1 GDP and a 0.2% cut to Q2 GDP – just as hope was getting going once again.
If we build it – they might come – or we’ll leave it on dealership floors… and stop stacking.
via Zero Hedge http://ift.tt/1kXp2av Tyler Durden