Inventories & Sales Ratio

January 1, 2008 at 3:08 am | Posted in economy, USA | Leave a comment
Tags: inventories/sales ratio

http://www.census.gov/mtis/www/mtis_current.html
Total Business Inventories and Sales Ratios

This release is the primary source of data on inventories. The rate of inventory accumulation plays a key role in determining the current pace of economic growth and often provides useful clues about the future pace of growth as well. For example, if inventories are accumulating at a rapid pace, such that inventory sales ratios are rising, it may portend a slowing of growth in the near future as firms cut production to bring inventories back into line with sales. Vice versa, if inventories are growing slowly or actually falling, it may signal a future pickup in production.

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