Now, granted, all that glimmers isn’t…you know…but we’ll take it.
March 23 (Bloomberg) — The news about global manufacturing is so bad, it might be good.
As factory production collapses around the world, excess inventories that stand in the way of an eventual recovery are disappearing even faster. That may allow manufacturing to stabilize later this year, providing some relief for a global economy that is contracting for the first time in six decades.
“The drop in inventories is good news,” says Ethan Harris, co-head of U.S. economic research at Barclays Capital in New York and a former economist at the Federal Reserve Bank of New York. “Just as unusually low valuations set the stock market up for recoveries, unusually low inventories set up the economy for recovery.”
Various cautions, contextualizing and caveats follow.
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