The Commerce Department is reporting today that sales at wholesalers increased twice as much as inventories in March. Companies have been keeping their inventories lean because of the bleak economic picture and fears of low demand. In a separate report, the Federal Reserve said that consumer borrowing saw its smallest increase since last November, as consumers shy away from borrowing to make their purchases.
See "Sales Increase at Faster Rate Than Inventory", Bloomberg News, The New York Times, May 7, 2003