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US: Business Inventories
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 0.2% | -0.2% to 0.2% | 0.0% | 0.3% | 0.4% |
| Manufacturing Inventories | 0.1% | 0.2% | |||
| Retail Inventories | -0.2% | 0.6% | 0.8% | ||
| Wholesale Inventories | 0.2% | 0.1% | 0.3% |
Highlights
Business inventories are flat in June compared to May and are below the consensus of up 0.2 percent in the Econoday survey of forecasters. May inventories 0.4 percent higher, a small upward revision from the prior report. June business inventories are up 3.0 percent from a year ago.
Manufacturers' inventories rose 0.1 percent in June and slow slightly from the 0.2 percent rise in the prior month. Manufacturers' inventories are 1.8 percent above June 2025.
Retail inventories dip 0.2 percent in June from May, a downward revision from no change in the advance estimate. Retail inventory growth in June is a pause from a rise of 0.8 percent in the prior month. Retail inventories are up 3.2 percent year-over-year in June.
Wholesalers' inventories are up 0.2 percent in June from May, following a minor upward revision to 0.3 percent higher in May from April. Wholesalers' inventories are up 4.2 percent from June a year ago.
Market Consensus Before Announcement
Inventories expected up a routine 0.2 percent.
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.
