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U.S. business inventories held steady in June as wholesaler stocks rose
Inventories were flat after a 0.4% increase in May, while business sales fell 1.1% in June.
U.S. business inventories were unchanged in June, as higher stocks at wholesalers were offset by declines at retailers, a pattern linked to strong domestic demand in the second quarter, according to Reuters citing data from the Commerce Department’s Census Bureau.
The June reading followed a 0.4% rise in May and came in line with the idea that inventories, a component of GDP and a volatile data point, can swing month to month. Economists polled by Reuters had forecast inventories would edge up 0.1% in June.
Reuters reported that inventories have been drawn down for five straight quarters amid robust domestic demand, and that this inventory pullback subtracted from gross domestic product growth in the second quarter. Retail inventories fell 0.2% in June, after a 0.8% increase in May, while motor vehicle inventories rose 0.4%.
Wholesale inventories rose 0.2% in June and manufacturer stocks edged up 0.1%, but business sales declined 1.1% after falling 2.1% in the prior month. At June’s sales pace, businesses would take 1.30 months to clear shelves, up from 1.28 months in May, and the inventories-to-sales ratio was 1.39 months in June 2025.