SPENDING, NOT THE ECONOMY:

Wholesale Inventories Drop (JUDITH BURNS And JEFF BATER, 3/10/10, WSJ)

U.S. wholesalers' inventories unexpectedly fell 0.2% in January, the Commerce Department said Wednesday, as surging demand pulled goods off shelves in the first month of the year.

Wall Street analysts had expected inventories to rise by 0.2% in January. The unexpected decline followed a downward revision in December's inventory level showing December inventories contracted by 1.0%, rather than the 0.8% drop originally reported.

Sales by U.S. wholesalers in the first month of 2010 were up 1.3% to a seasonally adjusted $346.7 billion, the latest data showed. It was the tenth straight monthly increase in sales, according to the Commerce Department. Sales were particularly strong for cars and groceries. [...]

The amount of wholesale goods on hand relative to sales was 1.10 in January, a record low. The inventory-to-sales ratio measures how many months it would take for a firm to deplete its current inventory. The ratio in December was 1.12.

Wholesalers' inventories of durable goods, those meant to last three or more years fell 0.5% in January, and automotive stocks dropped 0.2%.

High demand, low supply, huge productivity, low interest rates...if the UR would push through those trade treaties and "reform" immigration he'd be re-elected.

Posted by Orrin Judd at March 10, 2010 7:39 AM