Key facts
- US business inventories rose 0.4% in August, following a 0.9% increase in July.
- Inventories increased 4.6% year-on-year in August.
- Retail inventories excluding autos were unchanged in August, instead of a previously estimated 0.1% gain.
- Business sales rose 1.1% in August after a 0.5% increase in July.
- The inventories/sales ratio stood at 1.40 months in August 2025.
US business inventories rose a moderate 0.4% in August, indicating businesses are rebuilding stock amid strong sales growth. This increase followed a 0.9% surge in July and a 4.6% year-on-year rise. The restocking effort is largely dependent on imports, which economists estimate could subtract up to 2.5 percentage points from third-quarter GDP growth, though they expect restocking to offset this impact. The economy grew at a 2.2% annualized rate in the second quarter, with inventories subtracting 0.53 percentage point from GDP growth in that period. Business sales increased 1.1% in August, leading to an inventories/sales ratio of 1.40 months in August 2025.