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Inventory liquidation has only begun, despite production slashes.
The institute's inventories index fell to 37.7 from 37.9, indicating a slowdown in inventory liquidation.
But inventory liquidation will soon start to go the other way".
Many economists said that extensive inventory liquidation had ended and that companies had begun to replenish stocks, something that will benefit the struggling recovery.
Analysts say that the stage has been set for such a rebound given how lean inventories are at present after a significant inventory liquidation during the recession.
Other countries, who bore much of the brunt of the inventory liquidation because they provide such a large share of what Americans consume, are already benefiting.
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My guess is that the current deflation, driven by inventory liquidations, will be over by year-end.
Lands' End plans to test more auctions on eBay soon, and, says Frey, "If the customer demand is there, you'll see us move to auctioning on our site, maybe not even just liquidation inventory.
The charge will reflect the effect of asset liquidations, inventory adjustments and the accrual of future fixed costs associated with the four closings as well as the effect of the consolidation.
The rebound is robust mainly because of a "turnaround in inventory policies from breakneck liquidation to slow accumulation," Mr. Wojnilower said.
Roberds, which has operated under Chapter 11 bankruptcy protection since January, said yesterday that it closed its 15 stores and 2 distribution centers in Ohio, Georgia and Indiana to conduct an inventory to prepare for liquidation.
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