Wholesale trade matters, as it measures the dollar value of sales made and inventories held by merchant wholesalers. It is also a component of business sales and inventories. The seasonally adjusted figure was $481.9 billion, but sales for wholesalers fell 1.4% to almost $402.9 billion.
The implication here is easy to see. Businesses are reluctant to hold lots and lots of inventories. With a weak economy, business owners do not want their capital tied up in a bunch of goods that they may have to discount to push out the door.
Today’s news is simply an explanation of “JIT” inventories … “just in time,” even if it has been used more for manufacturing supplies in the past.
JON C. OGG