Articles from Theodore Cangero
In any given month, if sales outpace inventories, then firms are seeing strong demand. If inventories rise by more than sales, then demand is likely weak.
The fact that sales outpaced inventories in October helped push our index of leading indicators further into positive territory. Our Leaders Index stands at 58, up from 54 in September, with 50 being neutral. We view that as a further indication that the risk of recession in the coming months has diminished somewhat.