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US: Business Inventories
| Actual | Previous | Revised | |
| Month over Month | -0.1% | 0.1% | 0.0% |
| Manufacturing Inventories | 0.1% | 0.1% | |
| Retail Inventories | 0.3% | 0.1% | |
| Wholesale Inventories | -0.5% | 0.2% | -0.1% |
Highlights
Business inventories for January are down 0.1 percent from December after no change in December from November and up 1.0 percent in November from October. The influx of goods in November after the end of the October 1-November 12 federal government shutdown slowed to a trickle in December and into January.
Inventories at manufacturers are up 0.1 percent month-over-month in January and December. Inventories of merchant wholesalers is down 0.5 percent in January after down 0.1 percent in December and point to no hurry to restock after November.
Inventories at retailers are up 0.3 percent in January after up 0.1 percent in December. Inventories of motor vehicles and parts are up 0.3 percent in January after down 0.6 percent in December. Food and beverage inventories are down 0.7 percent in January after down 0.1 percent in December. Inventories of building materials are up 1.3 percent in January after no change in December.
Market Consensus Before Announcement
* Originally scheduled for 3/16/2026
Definition
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.
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 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.
