US business inventories kept rising in July, pointing to possible output slowdown in the future

August 20, 2024
US business inventories rose by 0.3% in July after increasing by 0.5% in June. 3-months moving average rose to 0.4% continuing the uptrend starting in December 2023 (see chart).
Rising inventories mean consumer demand lags the supply from producers who then have to accumulate these unsold goods in stock. The recent dynamic of the indicator may imply the producers will be forced to contract production in the future to reduce their inventory.
⭐️Summary:
The moderate rise in business inventories keeps going from December 2023. This may lead to the slowdown in production in the future as producers will be forced to shrink their output to reduce stockpiles.