2017 Economic Calendar
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Business Inventories  
Released On 2/15/2017 10:00:00 AM For Dec, 2016
PriorPrior RevisedConsensusConsensus RangeActual
Inventories - M/M change0.7 %0.8 %0.4 %0.2 % to 0.5 %0.4 %

December was a very strong month for the economy based on the business inventories report where a moderate build was far offset by a surge in sales. Business inventories rose 0.4 percent in the month with sales up 2.0 percent in a mix that drives down the stock-to-sales ratio to 1.35 from 1.38. This is the lowest ratio in 2 years.

Manufacturers and retailers saw their inventories inch only 0.1 percent higher while sales jumped 2.2 percent for the former and 1.2 percent for the latter. Wholesalers saw their inventories build by what looks like an uncomfortable 1.0 percent though against a sales gain of 2.6 percent.

High inventories are often a negative for future production and employment but not when demand is on the rise. This report points to an economy that entered 2017 with momentum.

Consensus Outlook
Forecasters see business inventories rising 0.4 percent in December following November's large 0.7 percent build. High inventories are a plus for the GDP calculation but unwanted inventories, which pile up when demand is soft, pose a risk to future production and employment.

Business inventories are the dollar amount of inventories held by manufacturers, wholesalers, and retailers. The level of inventories in relation to sales is an important indicator of the near-term direction of production activity.  Why Investors Care
Inventories tend to rise when economic conditions are strong since sales are rising at the same time, the inventory-to- sales ratio may remain stable, or rise at a very slow pace. Inventories tend to when economic conditions are weak since sales are falling at the same time, the inventory-to-sales ratio may remain relatively stable. The I- S ratio then begins to rise as sales fall more quickly than inventory growth.
Data Source: Haver Analytics

2017 Release Schedule
Released On: 1/132/153/154/145/126/147/148/159/1510/1311/1512/14
Release For: NovDecJanFebMarAprMayJunJulAugSepOct

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