Business Inventories Jump As Sales Slump Most In 18 Months

Business Inventories rose 0.6% MoM in January (es expected, so unlikely to impact Q1 GDP expectations) but Business Sales slumped 0.2% MoM – the biggest drop since July 2016.

Motor Vehicles saw a 1.7% surge in inventories in January (and 0.9% drop in sales).

On a YoY basis, Business Sales growth is slowing dramatically (after the storm-driven spike)…

 

All of which has pushed the inventories-to-sales indicator higher for the first time in 7 months…

 

The ‘Field of Dreams’ economy is alive and well it seems.