Wholesale Inventories on the Rise

In a clear sign of economic expansion, the US witnessed a 0.4% increase in wholesale inventories in March, reaching a staggering $907.5 billion, as reported by the Census Bureau. This adjustment, accounting for seasonal variations and trading day differences but not price changes, marks a 2.2% growth compared to the previous year.

Sales Growth Outpaces Inventory

Complementing the inventory rise, sales also saw a healthy uptick, with a 0.6% monthly increase and a 6.1% annual surge, totaling $697.9 billion. This dual growth highlights a robust demand in the wholesale sector.

Inventory-to-Sales Ratio Declines

The inventory-to-sales ratio for merchant wholesalers dipped to 1.30 in March, down from 1.35 in March 2024, indicating a more efficient turnover of goods and a positive outlook for the economy.