| Actual | Previous | Revised | |
|---|---|---|---|
| Month over Month | -0.1% | -0.1% | -0.3% |
Highlights
The advance report on retail inventories for April reflects a broad drawdown of inventories begun in December 2024 as consumers were eager to buy hard goods before prices could rise if new tariffs were imposed when the Trump administration came into office in January 2025, and also to avoid supply shortages that might result from higher tariffs.
The exception is in inventories of motor vehicles where dealers were anxious to bring in imported models and parts before costs could go higher and to have supplies on hand for vehicle maintenance.
The report includes annual revisions issued on April 25.
The advance report on retail inventories for April shows total inventories down 0.1 percent month-over-month after declines of 0.3 percent in March and 0.1 percent in February.
Retail inventories excluding motor vehicles and parts are down 0.9 percent in April, off 1.6 percent in March, and down 0.6 percent in February.
Inventories of motor vehicles and parts are up 0.3 percent in April and March and up 0.1 percent in February.
The exception is in inventories of motor vehicles where dealers were anxious to bring in imported models and parts before costs could go higher and to have supplies on hand for vehicle maintenance.
The report includes annual revisions issued on April 25.
The advance report on retail inventories for April shows total inventories down 0.1 percent month-over-month after declines of 0.3 percent in March and 0.1 percent in February.
Retail inventories excluding motor vehicles and parts are down 0.9 percent in April, off 1.6 percent in March, and down 0.6 percent in February.
Inventories of motor vehicles and parts are up 0.3 percent in April and March and up 0.1 percent in February.
Definition
Retail inventories measure the monthly dollar value of inventories held by retailers. The advance report is released late in the month for the following month and is part of the Monthly Advance Economic Indicators report (which also includes data on wholesale inventories and international trade in goods). Final monthly data for retail inventories are released about two weeks later with the Business Sales and Inventories report.
Description
Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers a slower rate of growth that won't lead to inflationary pressures. Retail inventory data give investors a chance to look below the surface of the visible economy, especially for unwanted build. If inventories are growing too fast relative to economic growth, then both production and employment will probably have to slow while those inventories are worked down.
