4/6/2009

Many small companies have reduced their inventories as credit from their suppliers has been squeezed. NFIB members indicated in a recent survey that they planned to reduce inventory more dramatically than in 1991. "Large companies limit the availability of credit to small companies, but by doing so lead to a short-term reduction in demand for their own product that generates a second-round negative economic impact," UBS said in a report last week.

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