Chart courtesy of Bloomberg:
A continuing drop in business inventory is another recessionary signal. From the chart we can see that since January 2009 there has been a steady downward trend in the inventory to sales ratio.
This is not good news for the bulls and green shoots crowd.
As we have argued repeatedly on this blog, there is no recovery in sight. Not as long as determined governments and central bankers refuse to allow the investing errors to be corrected by bailing out every large bank, corporation, and sovereign state that chronically overspends.
Failures must be acknowledged, and corrected, and bad debts written off before recovery can truly begin.