Inventories boosted Q4 GDP
Last week's Q4 US GDP revisions showed a surprising rise in imports that accounted for a large part of growth at 1.0% compared to 0.4% expected.
Deutsche Bank says it's beginning to unwind "it appears that the inventory unwind that we have been expecting imminently will begin in earnest in the present quarter." They say the inventory subcomponent of the manufacturing ISM survey points to slower stockpiling.
Automotive inventories may be thinned out as well. They "doubt vehicle sales will improve upon 2015's near-record pace, because there is much less pent-up demand, and financing is likely to be less generous."