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It is unlikely that the rate of inventory accumulation will accelerate further.
"Weakening domestic demand kept inventory accumulation high," said Stan Shipley, a Merrill Lynch economist.
This spending category includes equipment, software, inventory accumulation, and residential and nonresidential construction.
As it turned out, most of the recession of 1957-58 was a result of a runoff of excessive inventory accumulation rather than a failure in underlying demand.
She had expected a growth rate of nearly 5percentt and now expects at least that much in the second quarter, assuming that inventory accumulation finally kicks in.
"Producers will continue to scramble to catch up with demand and inventory accumulation may contribute as much as one percentage point to growth this year".
Similar(34)
"We've seen some inventory accumulations at semiconductor manufacturers," agrees Thomas Weisel Partners analyst Eric Gomberg.
Inventory re-accumulation could start tomorrow.
Once inventory re-accumulation and auto production snap back in the back half of '09, the economy needs new motive power for 2010, but I can't find it as yet.
In 2010, the inventory swing to accumulation could be worth as much as 2 percentage points of positive GDP.
That had led to an accumulation of inventory, leaving wholesalers with little appetite to buy more merchandise.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com