Economic Events on April 9, 2010

By B.P.T., on April 9th, 2010

At 10:00 AM EDT, the Wholesale Trade report will be released for February, showing inventory levels for wholesalers in the U.S.  If inventory growth lags behind the strong retail sales that have been reported recently, it could be a sign that increased production will be needed in the upcoming months.

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Q4 Growth – The Best Since 2003

By Eldon Mast, on March 1st, 2010

Rebuilding of depleted inventories was behind an improvement in 4Q economic growth estimates above what was previously estimated. The estimate brought estimates up to 5.9% from earlier estimate of 5.7%. Last quarter’s growth was likely the strongest since 3Q 2003.

Inventory accumulation was estimated to have added 3.9% to economic growth last quarter. The accumulation of course was necessitated by dwindling stockpiles in several previous years. There was also an upward revision to growth in real imports to 15.3%.

Price inflation remains quite tame following little to no inflation during the prior two quarters. Diminished price gains for all of last year pulled the annual increase down to 1.2% which is its weakest increase since the early 1960s.


Almost 6% annualized growth and inflation at 1%? Does it get any better? Well, all signs point to Q1 growth accelerating.



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East Coast Blizzard Yields Silver Lining for Some

By Eldon Mast, on February 12th, 2010

Mega-storms storms paralyze many businesses, but for others ice and snow spells big profits.

“All of our inventory has disappeared faster than concert tickets,” says Jon Hoch, owner of Power Equipment Direct Inc., an online dealer that has seen surging sales. Snow blowers inventory is now such that, “We have this beautiful Web site that in a day or two won’t have anything left to sell.”

For years the cab drivers in DC have taken advantage of snow situations. On Wednesday one traveler heading to Reagan National Airport said a cabbie tried to charge him a “$100 snow fare.”

In Pennsylvania, Jack Frost Big Boulder, Blue Knob, and Camelback ski resorts are all reporting premium skiing conditions. Servicing key markets like Philadelphia, DC and the Poconos — all areas have had record snows — and East coasters are heading for the hills — their wallets in tow.

Michael Cleren of Jack Frost reports, “We are set for record [sales] numbers in the next 10 days.” For most eastern ski resorts business is strong and the snow pack is now in place for healthy March operations and profits.

For grocery stores, these are also profitable times. The snow storms have challenged Wawa, Safeway and Giant retailers to stay open during the inclement weather. Those that can manage to keep their doors open report brisk sales with the public making a run on staples just prior to the storm.

Sal Mattera, Wawa operations chief reports other good news for some Wawa vendors:
the store pays overtime to keep their parking lots plowed and sidewalks clear. During a storm, customers are in a spending mood. If customers can make it to their parking lot, Wawa does everything possible to make sure they make it inside.



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