The inventory and sales report on American business shows that inventories are lean. This usually means that production will be increased to restock shelves.
But look at the longer-run trend:
For over a decade, we’ve had a steep decline in inventory-sales ratios. What we’re seeing now is not a short-term cyclical change that tells us business production will increase next quarters. Instead, we’re seeing the overall economy shift into lean mode.
Business implication: get lean. In my forthcoming book, Businomics, I emphasize the riskiness of inventories. First get lean, then buy the book.