Inventories and the business cycle

5-4-2011 15:00

Inventories play a crucial role in explaining business cycle turning points. Inventories contributed 0.7 percentage point to a 4 percent contraction of economic activity in 2009. In light of this, demand for inventory data has been growing since the financial crisis hit in late 2008. This paper analyses Dutch wholesale and manufacturing inventories and relates them to the business cycle.