SALES AND INVENTORIES
A net 8 percent of all owners (seasonally adjusted) reported higher nominal sales in the past three months compared to the prior three months, unchanged and the fourth consecutive strong month. The net percent of owners expecting higher real sales volumes fell 8 points, to a net 20 percent of owners. The decline is surprising in light of the continuing good news for jobs and the economy, as well as continued reports of better sales from small business owners.
The net percent of owners reporting inventory increases fell 4 percentage points to a net 3 percent (seasonally adjusted), still positive and extending a three month run of substantial inventory building. The net percent of owners viewing current inventory stocks as “too low” was a net negative 6 percent, down 3 points, suggesting that current stocks are looking more excessive in light of diminished sales expectations. Consistent with weaker sales expectations and dissatisfaction with current stocks, the net percent of owners planning to build inventories fell 3 points to 1 percent.
