Analyst Dave Rosenberg presents a series of enlightening charts this morning that show that for the first time in 14 months, manufacturing inventories are up across the board.
Rosenberg: Looking at the sector breakdown of the report, the charts below highlight the sectors that are seeing an outright inventory re-stocking at this time. In addition, what makes these sectors pop out is that they were also cited as areas of expansion in the latest Fed Beige Book.
The charts focus on everything from construction to defence research. While some sectors have been more turbulent in past months, it’s interesting to see them all rise for the first time in quite a while.
In the past two months, iron and steel mill inventories are up 6.2% at an annual rate, which is the fastest rate of change since October 2008.
defence search & navigation equipment inventories surged 2. 4% mum in October, the largest monthly increase since September 2007.
...And the increase in inventories is not just in autos but in heavy duty trucks as well — up 3.8% mum in October, the largest increase in a year.
Food products, which cover grains, dairy products and meat and seafood products are up 1.4% mum, which is the largest increase since July 2007.
Beverage and tobacco products are seeing a 0.6% increase in inventory, which is the largest build in seven months and is up three of the past four months.
Inventory of basic chemicals (ie, fertilizers, pharmaceuticals, paints, adhesives, etc) are also increasing, up 0.2% mum in October from no change in September.
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