per the image of the economic indicator, please analyze the data, noting how the
ID: 1137331 • Letter: P
Question
per the image of the economic indicator, please analyze the data, noting how they have behaved and what trends you see. please explain why there was a decline, in line, and stable of the data.
explain where you think we are in the business cycle. why you think that is the case? what supports your conclusions?
explain where where the economy is headed. why you think that is in the 12-24 month outlook?
Business Inventory/Sales Ratio Percent 1.7 1.7 Retailers 1.4 Jul Total Busines 1.3 1.3 -- ,'' , Manufacturers 1.2 1.1 1.1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Explanation / Answer
Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a period.Higher ratio shows strong sells.
Observations: In last two years 2016-18, this ratio Inventory turnover is decreasing and this trend is both in manufacturers and retail business also. Thi shows pessimistic envoronment and negative anilam spirits in an economy and it is in recessionary cycle where total output is less than potential Gross domestic product.
We can say post 2009-10 this ratio has shown general decreasing trend and this may be due to subprime crisis where many banks went downn in USA. This event caused money to go out of market and purchasing power also went dow. However, 2014 onwards there has been revival in this trend mainly due to expansionary fiscal and monetary policy adopted in USA.
2017-18 onwards again protectionism is increasing all over the world and hence global demand has shrunk.
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