US: Business Inventories Continue Long Decline

Business inventories shrank at a 1.0 percent pace in May, while sales were roughly flat. Businesses across the supply chain are continuing to decrease their stockpiles at a moderating rate as the recession drags on. Inventory Draw-downs Continue, Pace Moderating We are poised for another massive inventory correction in Q2. Inventories/sales ratios remain extremely elevated, but businesses have regained some control over inventories. Sales remain weak but have stopped plummeting. Manufacturers,