Inventories Normalizing

Apollo Chief Economist

Although services make up 80% of GDP, fluctuations in the goods sector are still important. Inventory levels are normalizing as a result of the supply chain improving and the goods sector of the economy slowing down, see chart below. Inventories for wholesalers are back to pre-pandemic levels, but inventories for retailers are still substantially below 2019 levels.

Chart showing wholesale inventories are back to pre-pandemic levels. But retail inventories are still below levels in 2019.
Source: Census Bureau, Haver, Apollo Chief Economist

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