Sales gallop ahead
Wholesale inventories increased a modest 0.4% in March, while sales continued to accelerate, rising a healthy 2.4%.
Production is rising in response to an improving economy, but manufacturers still seem a little bit hesitant to ramp up production, as seen by the drop in the inventories-to-sales ratio from 1.16 to 1.13, a record low.
The inventories-to-sales ratio measures how many months it would take businesses to liquidate all goods on hand at the current sales pace.
Because stockpiles are at at a low, further increases in production are likely, further fueling economic activity.
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