Does anyone know about the economic indicator of Manufacturing and Trade Inventories and Sales?

Answer 1

Manufacturing and trade inventories tell how much of durable goods are produced and still sitting on shelves. Since durable goods are products that are generally purchased in times when the economy is doing well as opposed to times when there is a recession, a buildup in these inventories due to slowing sales could be indicative of an economic slowdown, as companies begin to tighten their belts and no longer purchase the larger items that they do when times are good. Thus, this is an economic indicator telling about the health of the economy going forward.