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"Rising inventory levels and price competition have exerted pressure on profit margins and have led to consolidation in the market," Hui Ying-bun, the company's chairman, said in the statement.
This will contribute to steadily rising inventory levels throughout the year consisting of undesirable aircraft that won't sell anytime soon.
S&P said the home-building sector's problems have been "exacerbated by rising inventory levels, the sharp decline in nonconforming mortgage products and the determinedly negative sentiment of even well-qualified consumers".
This month Cisco's stock fell about 4% because investors were spooked about rising inventory levels–something Chambers said he is not concerned about, since companies are beginning to spend more and demand for Cisco's products is rising.
S&P said the homebuilding sectors problems have been exacerbated by rising inventory levels, the sharp decline in nonconforming mortgage products, and the determinedly negative sentiment of even well-qualified consumers..
"Rising inventory levels are considered to be a business investment, so they add to GDP," said Joe LaVorgna, chief U.S. economist at Deutsche Bank, on Thursday, in advance of the data.
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Rising inventory can indicate a weakening market.
This has led to rising inventory, he said.
Worldwide factory capacity for chip makers is rising, semiconductor inventory levels are low and demand is growing, a combination that favors the equipment industry, Gartner said.
"Even if demand is up, inventories are still rising and inventory levels are high as it is," Weiss says.
He and Dennis Powell, the chief financial officer, attributed the rising inventories to a calculated effort to have the right level of supply to meet seasonal demand, particularly of back-to-school products.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com