Key facts
- U.S. business inventories were unchanged in June.
- Wholesale inventories increased by 0.2% and manufacturer stocks by 0.1%.
- Retail inventories decreased by 0.2%, with auto inventories up 0.4%.
- Retail inventories excluding autos fell by 0.4%.
- Business sales declined by 1.1% in June.
- The inventories-to-sales ratio rose to 1.30 months.
U.S. business inventories remained unchanged in June, a flat reading that followed a 0.4% rise in May. This stability was driven by an increase in wholesale stocks offset by a decline at retailers, reflecting strong domestic demand in the second quarter.
Economists polled by Reuters had forecast inventories to edge up 0.1% in June. Year-on-year, inventories increased 3.0% in June. Business inventories have been drawn down for five straight quarters amid robust domestic demand, a mix of consumer spending and business investment tied to artificial intelligence. They subtracted from gross domestic product growth in the second quarter, when the economy grew at a 1.5% annualized rate.
Retail inventories fell 0.2% in June, a downward revision from the initial estimate of unchanged. May retail inventories had surged 0.8%. Motor vehicle inventories rose 0.4% as previously reported, following a 0.9% increase in May. Retail inventories excluding autos, a key component for GDP calculation, dropped 0.4%, also a downward revision from the initial estimate of a 0.2% fall. These inventories had gained 0.7% in May.
Wholesale inventories rose 0.2% in June, while stocks at manufacturers edged up 0.1%. Business sales fell 1.1% in June, following a 2.1% drop in the prior month. At June's sales pace, it would take 1.30 months for businesses to clear shelves, up from 1.28 months in May. The inventories/sales ratio was 1.39 months in June 2025.