US business inventories increase moderately in May as sales accelerate

WASHINGTON, July 16 (Reuters) - ‌U.S. business inventories ​increased ​moderately in May amid continued strength in sales, pushing the inventories-to-sales ratio to the lowest ‌level since late 2021.

Inventories rose 0.3% after advancing ⁠0.6% in April, the Commerce Department's Census Bureau said on Thursday. ‌The gain in inventories, a ‌key component of gross domestic product and one of the most volatile, was in line with economists' ​expectations. Inventories increased 3.1% year-on-year in May.

The inventory build has been moderate despite a strong increase in imports ⁠of goods during the first two months of the second quarter, suggesting ​solid underlying domestic demand. Inventories have been drawn down for four straight quarters.

Retail inventories rose 0.6% ​in May as estimated in ‌an advance report last month. They gained 0.7% in April. Motor vehicle inventories increased 1.1% ⁠rather than 1.0% as previously reported. They rose 0.9% in April.

Retail inventories excluding autos, which go into the calculation of ⁠GDP, gained 0.3% instead of 0.4% as estimated last month. They ​advanced 0.7% in April. Wholesale inventories nudged up 0.1% while stocks at manufacturers climbed 0.2%.

Business sales increased 2.1% in May after advancing ‌1.4% in the prior month. At May's sales pace, it would take 1.28 months ‌for businesses to clear shelves, the fewest since November 2021 ⁠and down from 1.30 ‌months in April. ​The inventories/sales ratio was at 1.39 months in May 2025.

(Reporting by Lucia Mutikani; Editing by Andrea ‌Ricci)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Canada's Unifor union, GM reach tentative agreements
• Israel strikes southern Syria; Damascus condemns attack
• Romania adopts new measures to boost Danube waters to cool Cernavoda nuclear plant