Key facts
- U.S. wholesale inventories rose 0.2% in June, a downward revision from the initial 0.3% estimate.
- Stocks of nondurable goods, including petroleum, fell 0.6% in June.
- Durable goods inventories increased 0.6%, boosted by motor vehicles, computer equipment, hardware, and machinery.
- Wholesaler sales decreased 3.0% in June.
- Business inventories have been drawn down for five straight quarters.
U.S. wholesale inventories saw a slight downward revision for June, increasing by 0.2% instead of the initially reported 0.3%, according to data from the Commerce Department's Census Bureau. This slowdown was primarily driven by a reduction in nondurable goods, notably petroleum products, which fell 3.9%.
Despite the revision, inventories have been drawn down for five consecutive quarters, supported by strong domestic demand fueled by consumer spending and business investment, particularly in artificial intelligence. This drawdown, however, subtracted from the second quarter's gross domestic product growth, which stood at a 1.5% annualized rate, even as domestic demand experienced its fastest pace in over three years.
Durable goods inventories, conversely, saw a 0.6% increase, led by gains in motor vehicles, computer equipment, hardware, and machinery. Sales at wholesalers declined by 3.0% in June, following a 3.5% rise in May. The inventories-to-sales ratio at wholesalers stood at 1.19 months in June, up from 1.15 months in May, and 1.30 months in June of the previous year.