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In particular, businesses emptied their inventories last year; manufacturing has enjoyed a rebound in recent months as companies have stopped slashing stocks, but Mr Magnus argues it is not self-sustaining.Mr Rosenberg says government incentive schemes have been behind the housing-market rally and the jump in car sales.
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Firms cannot slash stocks for ever.
The liberalisation of imports has also enabled companies to slash stocks, releasing funds for investment.
The group — which operates 500 stores in the UK and Ireland and 263 in France under the name MIM — cut prices by 3% and slashed stocks by up to 15%.
This implies that output will slow sharply over coming months as firms slash stocks.Many economists are starting to worry that the weak dollar will push up inflation, leaving the central bank no room to cut interest rates if the economy slows abruptly.
The Internet and other information technologies slashed stock commissions, glutted investors with information and provided instant trading quotes.
Investors punished Cisco by slashing its stock price around 5% in a day, and analysts adjusted their estimates of the company's earnings.
Small businesses don't have the luxury of hoarding cash and slashing labor stock.
Nordstrom is still sorting through those questions because its sales slowdown has carried into 2016, sharply cutting the company's profit, slashing its stock price by nearly half and prompting a downgrade of its credit rating.
The continuing downdraft of net stocks slashed Priceline's stock to $27 by the end of August.
This year, output and exports have fallen by much more than the drop in demand, because firms have temporarily closed plants in order to slash excess stocks.
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