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                      DECPG Daily
        Economics and Financial Market Commentary
                   September 11, 2009
  Mick Riordan (x31289), Cristina Savescu (x80812), Nadia Islam Spivak (x80504)
    Eung Ju Kim (x85804), Shane Streifel (x33867), Annette De Kleine (x34710)
  You’ll find recent issues of this Daily and lots of other current analysis and high-frequency data at our
              intranet website: http://gem or for external users http://www.worldbank.org/gem.



Wholesale inventories extend decline. Stockpiles at wholesale outlets fell for an 11th
consecutive month, dropping by 1.4% (m/m) in July, extending the record decline in
inventories since the Commerce Department began collecting data in 1987 [see Daily
Chart at http://gem or http://www.worldbank.org/gem]. On a year-on-year basis
inventories were down 12.8% in July, maintaining the sharp downward slope on the
depletion that began in September 2008; however, on a seasonally adjusted,
annualized basis, the sharp reduction in inventories at wholesalers appears to be
reaching a bottom. Some of the decrease in stockpiles is being driven by sales at
wholesale outlets which have been rising steadily for 4 months, and were up 0.5%
(m/m) in July. At the current level, it would take 1.23 months for sales to deplete
inventories completely.

U.S. consumer sentiment improves. Confidence among U.S. consumers rose to 70.2
at the outset of September from 65.7 in August according to the Reuters/University of
Michigan index of consumer sentiment. Consumer confidence tumbled over the summer
as the wave of bankruptcies among car manufacturers and labor market deterioration
dimmed the outlook. The current upswing in consumer sentiment is in likelihood in
response to encouraging developments the housing market, and the effects of the fiscal
stimulus.




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The Daily Brief is a summary of economic news items for Bank staff whose responsibilities require that
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