DATA VIEW: I/S RATIO UPDATE - GROWTH CONTINUES

Inventories to Sales Ratio has been moderately ascending recently above its relevant risk-free levels of 1.3 along the relevant trend line.

It means that Inventories have been growing at a higher pace than Sales over the last several months

Savvy traders would be interested in watching this ratio as a potential risk indicator of the US economy.

If the ratio continues to ascend at the current phase, it will tell us that a significant fall in business sales is happening, and/or a large excess of inventories is being accumulated in the US economy – both factors are signs of a broader economic slowdown.
Growthinventoryratiorisksales

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