Did we just go through a mini-downturn?

U.S. wholesale costs dropped more than forecast in June, restrained by the biggest decrease in energy prices in two years.

The 0.4 percent decline in the producer-price index followed a 0.2 percent gain in May, Labor Department figures showed today in Washington. The median forecast in a Bloomberg News survey called for a 0.2 percent drop in June. The so-called core measure, which excludes volatile food and energy costs, increased 0.3 percent, more than projected.

Whole partitions of suppliers have exited business reducing demand for inputs. The ratio CPI/PPI has likely gone up. We will see when the inflation numbers are completely published.

And this:

WASHINGTON (AP) — U.S. businesses added to their stockpiles for a 17th consecutive month in May. But sales fell for the first time in nearly a year, a sign that many companies could be forced to trim supply levels if the economy weakens.

Business supply levels grew 1 percent in May, the Commerce Department said Thursday. Sales fell for the first time in 11 months. It was the worst showing for sales since June of last year.

Economists worry that businesses may have miscalculated consumer demand and could be stuck with unwanted inventories. That would trigger cutbacks in orders and cause manufacturing activity to slow.Yahoo/AP

This would be a lagging indicator. Business has already begun inventory adjustment.