US business inventories for March 2021
- US a business inventories rise 0.3% versus February the at 0.6% (was previously 0.5%)
- Business sales 5.7% versus February’s -1.6% (previously -1.9%)
- sales ratio 1.23 months versus 1.30 months in February
- retail inventory ex orders 0.6% versus 0.6% last month
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The sharp rise in sales in relation to inventories has sent the inventory to sales ratio to below the lowest level going back to 2012. The pandemic restart and supply chain issues as a result of that restart, is likely leading to the sharp fall. Two things can happen. The inventories can be rebuilt if capacity allows, or another potential option is that the inventories remain low, and force up prices.