Lloyds TSB Weekly Economic Research and Analysis

Deja vu – same old inventory-led economic downturn

Deja vu – same old inventory-led economic downturn

Many assumptions about economic and financial market performance have been shattered in the 2 years since the global credit market crisis started. Not least amongst these assumptions was the view that ‘lean production’ methods – including manufacturers keeping stocks to a minimum and producing on demand to customer specification – would reduce the impact of the stock or inventory cycle on economic growth.

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