Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (3004)	4/13/2001 12:55:23 PM
From: westpacific	Read Replies (1) \| Respond to of 74559

PPI report - April 12th Friday April 13 8:40 AM ET Business Inventories Fall 0.2 Pct. By JEANNINE AVERSA, Associated Press Writer WASHINGTON (AP) - Inventories of unsold goods held by U.S. businesses in February registered the biggest decline in almost five years. The Commerce Department (news - web sites) reported Friday that stocks of goods on shelves and backlots fell by 0.2 percent to a seasonally adjusted $1.22 trillion. The decline was the first since December 1998, when inventories were reduced by 0.1 percent and the largest drop since a 0.3 percent decline in March 1996. February's decline in inventories came even as sales slid by 0.3 percent to $892.1 billion. In January, inventories ticked up a tiny 0.1 percent and sales fell by 0.2 percent, according to revised figures. Friday's report also said that the inventory-to-sales ratio, which measures how long it would take businesses to exhaust their inventories at February's sales pace, was unchanged at 1.37 months. The ratio rose to 1.37 months in January, the highest since March 1999. Consumers' and businesses' appetite for goods has flagged as the economy has slowed. To work off inventories and bring them more in line with demand, companies are laying off workers, reducing shifts to curb production and deeply discounting merchandise. Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) has attributed much of the economy's weakness to an effort by businesses to cut back quickly on production in the face of falling sales. The Federal Reserve slashed interest rates three times this year, totaling 1.5 percentage points, in an effort to keep the ailing economy from slipping into recession. Many analysts expect Fed policy-makers will cut interest rates a fourth time by another half-point either before or at their next scheduled meeting on May 15. In February, retailers' inventories fell by 0.4 percent to $397.5 billion, following a 0.2 percent rise in January. Sales were flat in February at $274.8 billion after a 1.3 percent increase the month before. Inventories at factories slipped 0.1 percent $494.9 billion after a 0.5 percent advance the month before. Sales in February fell 0.5 percent to $364.5 billion, after a 1.6 percent decline. At wholesalers, inventories ticked down 0.1 percent to $327 billion, following a 0.4 percent decline. Sales fell 0.2 percent to $252.8 billion, after an 0.1 percent increase.