U.S. Wholesale Inventories Rose Less Than Expected in July

• U.S. wholesale inventories grew by 0.2% in July 2024, below the expected 0.3% increase.
• Inventories of short-term goods rose by 0.5%, while long-term goods increased by only 0.1%.
• Wholesale sales surged by 1.1% in July, recovering from a 0.3% drop in June.

Washington, 9 September (FinanceFlashNews) – Wholesale inventories in the U.S. grew by 0.2% in July 2024, slightly below expectations, according to revised data from the U.S. Department of Commerce. Initially, the growth was projected at 0.3%, but the actual increase was marginally lower, with short-term goods inventories climbing by 0.5% and long-term goods increasing by just 0.1%.

On a year-over-year basis, wholesale inventories rose by 0.4%, which is also lower than the preliminary estimate of 0.6%. Analysts monitor these figures closely as high inventory levels may indicate economic slowdown, whereas low levels are often seen as positive signs.

Despite the slower rise in inventories, wholesale sales rebounded in July, increasing by 1.1% after a 0.3% decline in June. Sales of short-term goods led the way with a 1.6% rise, while long-term goods sales grew by 0.5%.

The increase in sales outpaced the rise in inventories, resulting in a slight decrease in the inventory-to-sales ratio, which fell from 1.36 in June to 1.35 in July. This ratio indicates how many months it would take to sell all current inventory at current sales rates, with a lower number generally being seen as positive for economic growth.

Keywords: wholesale inventories, U.S. economy, sales growth, inventory-to-sales ratio, Department of Commerce