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"Restoring inventory-to-sales ratios to moderately higher levels will require substantial inventory investment," said Steven Wood, president of Insight Economics in Danville, Calif.
But that stockroom rebalancing appears to have restored inventories to acceptable levels and probably will not drive much more business spending growth later in the year.
This includes evaluating which products sell best to restore inventory, as well as good record keeping for tax purposes.
"We stabilized our business, both financially and operationally, and restored our process disciplines, promotions, inventory levels and focus on the customer," Ullman said in a statement.
That seems unlikely, given inventory levels.
"Our inventory levels are not high.
An index measuring inventory levels declined to 39.3 from 41.4.
And the supply chain has basically reduced their inventory levels.
He predicted that would increase already bloated inventory levels.
This regional backup is also evident in foreclosure inventory levels.
Michael Rothman, a Merrill Lynch analyst, said American inventory levels were 50 million barrels below normal.
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