The monthly Wholesale Trade: Sales & Inventories for December 2009 is out and we have even more inventory slashing. Recall a major factor in Q4 2009 GDP was inventory restocking, so more evidence Q4 2009 GDP is a fleeting blip.
December 2009 sales of merchant wholesalers were $341.2 billion, up 0.8 percent (+/-0.9%) from last month. End-of-month inventories were $383.6 billion, down 0.8 percent (+/-0.5%) from last month.
This is fairly lean ratio, above, yet it seems the businesses just don't believe they are going to have a large sales pick up anytime soon.
Wholesale is about 30% of all inventories. Durable goods sales increased 3%.
What does this say? Seems businesses are not too confident on future sales.