Source: Department of Commerce/ U.S. Census Bureau
The ratio of inventory to sales has been falling. Click to enlarge.
In trying to become profitable again, businesses have been cutting workers, and they're cutting inventory, too.
The Census Bureau and the Commerce Department report today that inventories fell by 1.1 percent in June, a little less than the 1.2 percent drop in May and .2 more than economists expected. Inventories are down 9.8 percent from June 2008, as manufacturers and wholesalers stop stockpiling goods for customers who aren't showing up.
Sales rose .9 percent after being flat in May — that's down 18 percent from a year ago.
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