Real Inventory Contribution & Consumption

At Last, Inventory Correction Complete; Stocks Neutral Ahead

written by Michael Lewis on July 21, 2016

Following another dreary winter, the economy has sprung forward. After averaging just +1.25% annualized growth in 15Q4-16Q1, real GDP likely posted a reasonable +2.3% gain in 16Q2. The rebound was even more apparent in final sales, which grew a solid +3% in 16Q2 after managing just +1.5% in the prior two quarters.