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Rising inventories of products like automobiles and furniture suggest wholesalers may reduce orders, which could further depress factory production.
As stores reduce orders by 20percentt or more for fall, the toll on small fashion businesses, many without independent financial backing, is likely to be severe.
Wholesalers are likely to reduce orders from manufacturers even further to bring down that ratio, Tim Quinlan, an economic analyst at Wachovia, wrote in a research note.
Package volume in the United States slid for a sixth consecutive quarter as the recession caused businesses to reduce orders amid the highest unemployment rate in 26 years.
But State Department officials said that a decision by the Obama administration to scale back benefits might prompt foreign brands to reduce orders from the country.
Uncertainty about tax increases and deep government spending cuts led many companies to reduce orders for machinery and equipment earlier this year.
Similar(48)
Five different pseudorandomised orders were applied to reduce order effects across participants.
Department stores in America have sharply reduced orders.
"For Samsung, [the] biggest concern is reduced order from Apple.
Therefore, reduced order models are employed in many applications.
Significant time savings were observed for all reduced order models.
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