US Companies Cut Stock Of Agricultural Products And Clothing Wholesale In September
The drop in inventories in September showed that wholesalers were worried that future sales might be reduced, and that the European debt crisis had tightened the situation and the stock market had fallen. In general, if inventory is decreasing, such as demand is still rising, it is a good sign because manufacturers must expand production to meet demand.
Wholesaler sales rose 0.5% in September, rising by only half of that in August, but still higher than in July. Sales growth can avoid excessive inventory; if inventories increase too much, wholesalers will be forced to reduce future orders.
In the past two years, enterprises began to rebuild inventories during the recession. Manufacture The reasons for the strong growth of the industry during the economic recovery period.
This summer, inventories slowed down, making the third quarter (7-9 month) economic growth rate drop more than 1%, only 2.5%. Some economists think that in the coming months, businesses will increase their inventories due to sales growth, so expect. Stock It will contribute to economic growth in the fourth quarter (10-12 months), rather than a negative one.
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