U.S. wholesale inventories fall by 1.1% in October

December 10, 2008 by · Leave a Comment
Filed under: Economic News 

The mentality of hoarding cash is setting in even in a environment of falling prices.  The will continue until people regain confidence in our economy and their personal situation.  No one can be too rosy when everyday you here about more layoffs in the job market.  The problem is that we are in a self-reinforcing situation that will end in massive de-leveraging and a serious amount of inflation when it is all over. 

News:

U.S. wholesale inventories fell by a much larger-than-expected 1.1 percent in October and sales posted a record decline as petroleum sales and inventories both slumped, government data on Wednesday showed.

The Commerce Department said October’s fall in inventories was the steepest percentage decline since November 2001, when they dropped by a matching amount in the aftermath of the September 11 terror attacks on the United States.

Wall Street analysts polled by Reuters had expected a 0.2 percent decline in October inventories from a revised 0.4 percent retreat in September, as the U.S. recession chilled spending and investment. This was previously reported as a 0.1 percent drop.

Sales slid 4.1 percent in October after falling a revised 2.1 percent the previous month. They were initially reported as 1.5 percent lower.

Source: Reuters

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