Prior to the recently announced interest rate cut, the consumer products (CP) industry has exhibited mixed results across the supply chain. Apparel and Home sectors both saw declining quarter-over-quarter (QoQ) inventory turnover (-15% and -1%, respectively), as consumers continued to deprioritize discretionary purchases. Most sectors have reduced inventory levels, pushing towards flexibility and risk reduction. From a manufacturing perspective, the Purchasing Managers' Index (PMI) remained flat, reflecting companies' patient outlook as they await the impact of rate changes. Costs were mixed, with trucking rates down 3% while oil prices increased by 1%. Now that rate cuts are official, what will the ultimate impact be on the industry? Will companies have the supply chain agility to quickly respond and pivot if necessary?
a monthly basis, AlixPartners charts sales, sentiment and supply chains in consumer-facing businesses. Learn more about the Consumer Products Corner newsletter and read previous articles, here.
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