US wholesale inventories surge in July

U.S. wholesale inventories surged in July, the government confirmed on Thursday, potentially positioning inventories to contribute to economic growth in the third quarter. Stocks at wholesalers jumped by an unrevised 1.3%, the Commerce Department's Census Bureau said. Inventories, a key part of gross domestic product, increased 0.4% in July. They rose 5.7% on a year-over-year basis in July. Businesses are replenishing inventories, which have been drawn down for five straight quarters amid robust domestic demand. Inventories subtracted 0.72 percentage point from gross domestic product growth in the second quarter. The economy grew at a 1.5% annualized rate last quarter. Growth estimates for the July-September quarter are currently running well above a 2% pace. The surge in wholesale inventories in July was driven by durable goods, which increased 1.1%. Stocks of nondurable goods shot up 1.6%, with petroleum inventories increasing 6.5%. Sales at wholesalers rebounded 0.8% in July after dropping 2.9% in June. At July's sales pace it would take 1.20 months to clear shelves, up from 1.19 months in June. The inventories/sales ratio was at 1.28 months in July 2025.