Inventories dropped during the Covid-19 recession.
DR. BILL CONERLY USING CENSUS BUREAU DATA
Businesses cut inventories again, according to the latest report on manufacturers, wholesalers and retailers. Total sales of merchandise was off even more, which seems to justify carrying less stock on hand. But cutting back may be the wrong business strategy for this downturn.
One of the best pieces of advice to companies as the economy enters recession is to trim inventories - but not this recession. The usual advice reflects the lessons of past recessions, which were characterized by weak demand.