March Business Inventories rose by .4%, in line with expectations and up for the 5th month in the past 6 after 13 months in a row of declines but because sales rose 2.3%, the inventory to sales ratio fell to 1.24 months, matching the lowest level on record dating back to 1980. On one hand, the historically lean inventories seen is a reflection of the wait and see attitude on the part of businesses to the still uncertain economic environment but on the other hand provides a great backdrop for a hoped for pick up in production if confidence in the outlook grows and end demand improvements becomes more longer lasting.
