Economic Reports 02/15/09
Wholesale Trade Dec. -1.4% vs -0.6% Inventories at wholesalers are dropping but not nearly fast enough given the much greater drop in sales.
Wholesale inventories fell 1.4% in December against a 3.6% decline in sales at wholesalers, driving up the stock-to-sales ratio.
Auto inventories rose 1.7% while December sales plunged 8.1%, and the extremely disappointing vehicle sales data for January point to similar trouble ahead.
Also higher were inventories of machinery, up 1.2% while sales fell 2.3%.
While auto inventories are backing up due to a lack of consumer buyers, machinery inventories are backing up as industrial buyers pushout and cancel orders.
Trade Balance Dec -39.9 B vs 40.4B. Pointing to a worsening situation...
The U.S. trade gap continued to contract, once again due to a drop in oil prices.
The report clearly shows both domestic and worldwide demand contracting in an accelerated fashion.
Overall exports declined 6.0% while imports dropped 5.5%. Yoy, overall exports fell to down 8.4% from down 2% in November while imports worsened to down 14.7% from down 10.3% the previous month.
Initial Jobless Claims -8K at 623K Contraction remains steady and severe in the labor market.
The four-week average jumped over the 600,000 level, up 24,000 to 607,500. These are the worst levels since the early 80s.
Continuing claims are at their worst levels yet. Continuing claims for the Jan. 31 week rose 11,000 to a record 4.810 million.
Business Inventories Dec -1.3% vs -0.7% Inventories fell, but not nearly as much as sales, an imbalance behind the sweeping job cuts underway.
Business inventories fell 1.3% in December but against a 3.2% plunge in business sales, pulling up the stock-to-sales ratio.
A look at the year-on-year rates really underscores the imbalance...
at -11.8% for sales and at +0.9% for inventories. Inventories fell 1.1% in November, dwarfed by a 5.7% decline in sales.
Imbalances are consistent and evident across all sectors including retail where inventories fell 1% against a 3.3% fall in sales.
This report along with the ISM reports as well as company news point squarely at continued destocking as businesses scramble to adjust to what many see as a year of contraction.
Wholesale inventories fell 1.4% in December against a 3.6% decline in sales at wholesalers, driving up the stock-to-sales ratio.
Auto inventories rose 1.7% while December sales plunged 8.1%, and the extremely disappointing vehicle sales data for January point to similar trouble ahead.
Also higher were inventories of machinery, up 1.2% while sales fell 2.3%.
While auto inventories are backing up due to a lack of consumer buyers, machinery inventories are backing up as industrial buyers pushout and cancel orders.
Trade Balance Dec -39.9 B vs 40.4B. Pointing to a worsening situation...
The U.S. trade gap continued to contract, once again due to a drop in oil prices.
The report clearly shows both domestic and worldwide demand contracting in an accelerated fashion.
Overall exports declined 6.0% while imports dropped 5.5%. Yoy, overall exports fell to down 8.4% from down 2% in November while imports worsened to down 14.7% from down 10.3% the previous month.
Initial Jobless Claims -8K at 623K Contraction remains steady and severe in the labor market.
The four-week average jumped over the 600,000 level, up 24,000 to 607,500. These are the worst levels since the early 80s.
Continuing claims are at their worst levels yet. Continuing claims for the Jan. 31 week rose 11,000 to a record 4.810 million.
Business Inventories Dec -1.3% vs -0.7% Inventories fell, but not nearly as much as sales, an imbalance behind the sweeping job cuts underway.
Business inventories fell 1.3% in December but against a 3.2% plunge in business sales, pulling up the stock-to-sales ratio.
A look at the year-on-year rates really underscores the imbalance...
at -11.8% for sales and at +0.9% for inventories. Inventories fell 1.1% in November, dwarfed by a 5.7% decline in sales.
Imbalances are consistent and evident across all sectors including retail where inventories fell 1% against a 3.3% fall in sales.
This report along with the ISM reports as well as company news point squarely at continued destocking as businesses scramble to adjust to what many see as a year of contraction.
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