mishtalk.com / Mike “Mish” Shedlock / November 18, 2016 12:00:24
On November 15, the Census Bureau released its monthly report onManufacturing and Trade Inventories and Sales. Despite the fact that is it mid-November, we are just now getting data for September.
The census bureau headline reads “total business inventories/sales ratio based on seasonally adjusted data at the end of September was 1.38.” That’s a decline of 0.1 percentage points.
I went back through a number of charts to highlight major flaws inherent in superficial reporting on headline numbers.
Bloomberg Econoday saw things this way:
“Inventories proved tame in September, rising only 0.1 percent against a sharp 0.7 percent gain in sales that pulls the inventory-to-sales ratio one notch leaner to 1.38 from 1.39. High levels of inventories were a concern going into the fourth quarter but this morning’s very strong retail sales report may in fact point to the need to build inventories further.”
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