The Commerce Department reported today that wholesale inventory growth is slowing and that wholesale sales have dropped yet again.
Wholesalers are the folks that sell stuff to the retailers that sell stuff to every day Americans. When consumers buy more stuff, retailers buy more stuff from wholesalers and the wholesalers then buy more stuff and increase their inventories – that’s not what happened in March.
March wholesale inventories increased at a barely-measurable .1% after having only grown .2% the month before. Analysts had expected to see an increase in inventory growth velocity to .3% – that’s a miss.
March wholesale sales were even more disappointing. Sales of wholesale goods dropped .2% which is the 8th straight reduction in wholesale sales.
Consumers aren’t spending so retailers don’t spend which means wholesalers don’t spend. One more report, saying the same thing, that the media seems to be glossing over. The economy still sucks.