Business Inventories Fall -1.0%

July’s business inventories fell -1.0% to US$1.33bn, versus a Bloomberg consensus forecast of -0.9%. On a year over year basis the index has fallen -11.8%.  June’s release was revised down to -1.4% from -1.1%.  In July the inventory to sales ratio decline to 1.36, and is its lowest level since October 2008.  It is widely accepted that inventory replenishment over the remainder of the year will be a major driver of growth in the US.  But, without a corresponding uptick in consumer demand, these benefits may only be temporary.