After some stabilization into mid-2015, the ratio of business inventories-to-sales has surged as sales have disappointed and mal-investment-driven dreams have over-stocked. Business inventories rose 0.1% MoM in December (retail up 0.4%) and sales tumbled 0.6%.
Year-over-year, Inventories are now up 1.7% (led by retailers up 5.4%) while Sales are down 2.4% (led by Manufacturers down 5.1%)
Recession?
At 1.39x, the current ratio is flashing a warning that a deep de-stocking recession looms.
via Zero Hedge http://ift.tt/1oadY36 Tyler Durden