During the first half og 1997, real GDP rose by $142 billion, translating into a 4.1% annual growth rate. Over this same period, real investment in business inventories totaled $141 billion, almost equaling the rise in real output. Many analysts have characterized this rate of inventory investment as excessive or unsustainable, and have consequently predicted a marked slowdown in real output growth for the remainder of the year.
Suggested citation: “Inventories,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-10, pp. 11, 10.01.1997.