What does it mean for the economy when businesses grow their inventories?

Jul 17, 2024
It all depends on why they're doing it.
Business inventories are on the rise, but stocked shelves may have long-term effects on the economy.
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Business owners are warily stocking their inventories

May 8, 2024
With interest rate cuts uncertain, businesses owners are keeping their shelves a little leaner. But that's not necessarily a bad sign.
Businesses don't know if the Fed will cut rates this year. As a result, “they’re making decisions, in some cases, to postpone purchases until they absolutely need it,” says Dale Rogers at ASU.
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Some manufacturers may ramp up inventories this year

Mar 11, 2024
Businesses have spent the last year and a half trying to whittle down excess inventories. Some businesses still have work to do, but others are likely to build those inventories up this year.
If manufacturers do ramp up production, it would be the first expansion the sector has seen in 17 months.
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Bloated inventories are dragging down some sectors of the economy

Jan 11, 2024
Clothing companies and bike stores are some businesses that still have excess inventory — and that has ripple effects through the economy.
The bike industry has been oversupplied for more than a year, says Jeff Cayley, CEO of Worldwide Cyclery, and many stores are offering deep discounts.
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Commercial warehouse use expands at fast pace

Oct 3, 2023
Transportation and warehousing data shows second month of growth. Firms try to fine-tune planning in wake of supply chain snarls.
In recent years, erratic supply chain conditions have frustrated companies trying to plan how much inventory to store in warehouses.
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After a flat August, this North Carolina toy store is already looking forward to the holidays

Sep 14, 2023
For this toy store owner, the biggest challenge right now is prepping for the holidays.
"We are selling a lot of Halloween products right now," said Irene Kesselman, owner of Ali Cat Toys in Carrboro, NC. "And certainly we'll move into the Christmas season shortly thereafter."
Ariel Jackson

Retail inventories have dropped. But discounts might stick around.

Aug 16, 2023
Over the last year, many retailers have been successfully using discounts to purge their excess inventories. Now, retailers might use discounts to lure skittish consumers.
Target announced its inventories were down 17% from last year.
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For public good, not for profit.

Businesses are stocking inventory again

Jul 27, 2023
Businesses spent 2022 offloading a glut of inventory, but — in a good sign for the economy — they’re starting to carry more products now.
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After months of glut, manufacturers now say inventories are almost "too low"

Jul 6, 2023
Manufacturers surveyed by the Institute for Supply Management said that their clients’ inventories shrank in June. But how low is too low?
Low inventory levels could be a sign that manufacturers are doing a good job of handling the economic slow down.
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After years of too much or too little, a return to just-in-time inventory

Apr 4, 2023
The cycle of shortages and overstocking may be easing, thanks to supply chains restarting in Asia and the cost of storing products.
With inventories in better shape, big promotions and discounts have subsided.
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