U.S. retailers stocked up, but it's not a good sign

Major U.S. retailers, experiencing supply chain difficulties in recent months, are reporting a rise in inventories in warehouses. However, this is only a signal of falling demand from the public for a number of products.

Costco Wholesale said its inventories rose 26% in the last quarter. Also, Gap Inc reported a 34% "spike" in inventory. The flip side of the coin is the shifting priority of shoppers, shifting away from COVID-19 era inventories.

Macy's CEO Jeff Jennett said this week of an emerging "imbalance." Incoming goods from overseas are not matching current consumer preferences. U.S. residents have changed their shopping patterns and are spending less on household goods and more, for example, on clothing.