Wednesday, March 10, 2010

Census reports a nice lean inventory situation exiting January

While not the most timely of reports, the Monthly Wholesale Trade report from the Census is useful when estimating capital expenditures by industry.

Released a little over an hour ago, the January report showed good sales improvements compared with the wretched January 2009 period.  Even more positive is that inventory-to-sales ratio's are still low, implying more upside than downside to capital purchases by companies this year.

Speaking of potential capital outlays, yesterday was another massive day in the investment-grade bond market, with about $12billion raised at super-low rates.  Much of that money will go towards replenishing capital budgets that were pinched in 2009...

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