The pre-owned business jet market is improving, but demand for new jets is "elusive," according to a monthly business jet report released on Friday by J.P.Morgan. Used inventories are down nearly 3 percent this year, but might "only be approaching the end of the beginning...as inventories remain above last cycle's peak." Pre-owned inventory of in-production business jets declined from 11.9 percent in July to 11.6 percent last month, driven mostly by the midsize and large-cabin aircraft segments. Despite the deflating inventory, average asking prices for pre-owned jets decreased 0.4 percent last month. "With a large supply of used jets at attractive prices and elevated macro uncertainty, renewed demand for new aircraft could still be some time off," said J.P.Morgan aerospace analyst Joseph Nadol III. "It should be only a matter of time before demand picks up, but some OEMs may have to revisit production rates if the bounce does not come by year-end." According to the report, business jet flight activity increased 14 percent year-over-year in June. However, while flight operations are up 22 percent from the bottom, they're still 19 percent below the peak.