US wholesale inventories increased less than initially reported in August, rising a revised 0.5% as strong demand boosted sales. This figure is a downward revision from the previously reported 0.7% increase, with businesses rebuilding stocks after five quarters of drawdowns amid robust consumer spending and investment.
The revision to wholesale inventories indicates a slightly slower pace of inventory rebuilding than previously thought, which could influence future production and import levels. While businesses are increasing stock levels to meet robust demand, the data also highlights the ongoing strength in business spending and consumer activity, key drivers of economic growth.
US wholesale inventories increased less than initially reported in August, with a downward revision to 0.5% growth, according to data from the Commerce Department's Census Bureau. This figure contrasts with the previously reported 0.7% increase and follows a 1.4% surge in July. Businesses are actively rebuilding inventories, which had been drawn down for five consecutive quarters due to strong domestic demand, particularly from consumer spending and investment in artificial intelligence.
Durable goods inventories at wholesalers saw an 0.8% rise, while stocks of nondurable goods remained unchanged, with petroleum inventories declining by 3.9%. The increase in inventories has contributed to a jump in imports, with capital goods imports reaching a record high in August, signaling continued robust business spending on equipment for the July-September quarter.
Economists anticipate that trade may reduce third-quarter GDP growth by as much as 2.5 percentage points. However, they expect a positive contribution from inventories, following a 0.53 percentage point cut in the second quarter. Overall growth estimates for the third quarter are hovering around a 3.0% annualized rate, supported by strong consumer spending, compared to the 2.2% growth recorded in the second quarter.
Sales at wholesalers accelerated by 1.8% in August, an improvement from the 1.0% rebound in July. At the August sales pace, it would take an estimated 1.18 months to clear existing inventory, down from 1.19 months in July. The inventories/sales ratio stood at 1.28 months in August 2025.
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