U.S. business inventories are up 0.2 percent in September from August, matching the 0.2 percent gain expected in the Econoday survey, after an unrevised 0.0 percent outcome in August from July. Business inventories are 1.2 percent higher compared to September 2024.

Business sales are flat in September from August after no change in August from a month earlier and are up 3.7 percent in September from the same month in 2024.

The total business inventories/sales ratio at the end of September is 1.37 compared to 1.37 in August, and 1.40 in September 2024.

Manufacturers' inventories are down 0.1 percent on the month. Retailers' inventories are up 0.4 percent, and merchant wholesalers' inventories rise 0.5 percent.

Inventories seen up 0.2 percent on the month.

Business inventories are the dollar amount of inventories held by manufacturers, wholesalers, and retailers. The level of inventories in relation to sales is an important indicator of the near-term direction of production activity.

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 more moderate growth that won't generate inflationary pressures.

Rising inventories can be an indication of business optimism that sales will be growing in the coming months. By looking at the ratio of inventories to sales, investors can see whether production demands will expand or contract in the near future. For example, if inventory growth lags sales growth, then manufacturers will have to boost production lest commodity shortages occur. On the other hand, if unintended inventory accumulation occurs (that is, sales do not meet expectations), then production will probably have to slow while those inventories are worked down. In this manner, the business inventory data provide a valuable forward-looking tool for tracking the economy.