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As Samsung maintained high level of market share (around 40%) in Europe, sell-in shipments declined due to growing pressure from channel inventory surge as weak demand continued in 2Q.
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Inventory surged to an eight-and-a-half month supply (see Gary Shilling's housing forecast).
WASHINGTON (Reuters) — American wholesale inventories surged by the largest amount in two years in July, a government report said on Friday, in a sign that many companies were anticipating enough demand to increase their stock this summer.
Were it not for the other factors -- extremely low inventories, surging demand from a booming, S.U.V.-driving economy and all that -- the rules that force Midwestern refiners to use ethanol wouldn't have had such spectacular consequences.
But that was before gasoline inventories surged to one of the highest levels in years, the result of a spring refining blitz and an economic slowdown that, in the last month, has driven American demand for petroleum down 4percentt compared with the same period last year.
Capacity utilization of chip plants is at unusually low levels as customers work their way through inventories that surged in late 2008 and early 2009.
Inventories are surging.
The drop in inventory may presage surging imports as firms restock, meaning that growing demand will simply flow abroad, as has often happened.
But the U.S. economy still suffers from slipping demand, a backup of inventories, and a surge in energy prices, though this last problem has abated already.
Economists had attributed the relative strength in manufacturing in the first half of the year to a surge in inventory replenishment by stores that had allowed shelves to go bare during the recession.
So where is the surge in inventories?
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