From the Memphis Daily News :
Wholesalers cut back on their inventories in December by the largest amount in nearly 17 years, and economists say more reductions are likely amid the deepening recession.
The ongoing inventory reductions mean wholesalers likely will order fewer new goods, leading to reduced production and potentially more job layoffs.
The U.S. Commerce Department reported Tuesday that wholesale inventories plunged by 1.4 percent, nearly double analysts’ expectations of 0.8 percent and the steepest since records began in January 1992. It also was the fourth straight monthly decline.