US business inventories slightly above expectations in February

April 21, 2026 10:23 AM EDT

FILE PHOTO: Employees work on the production floor of the General Stamping & Metalworks building in South Bend, Indiana, U.S., March 23, 2026. REUTERS/Jim Vondruska/File Photo

WASHINGTON, April 21 (Reuters) - ‌U.S. business ​inventories ​increased slightly more than expected in February amid a sharp rebound in stocks at ‌wholesalers, suggesting that inventory investment could add to ⁠economic growth in the first quarter.

Inventories advanced 0.4% after being ‌unchanged in January, the ‌Commerce Department's Census Bureau said on Tuesday. Economists polled by Reuters had expected inventories, a key component ​of GDP and one of the most volatile, increasing 0.3% in February.

Inventories increased 1.3% year-on-year in ⁠February. The Census Bureau has now caught up on the release ​of this indicator after delays caused by last year's government shutdown. March business inventories will ​be released on schedule next ‌month.

Retail inventories increased 0.2% in February after rising 0.3% in January. Wholesale inventories rebounded ⁠0.8% while stocks at manufacturers gained 0.1%.

Business inventories made a small contribution to the 0.5% annualized GDP growth pace ⁠in the fourth quarter. The Atlanta Federal Reserve is currently ​forecasting GDP increased at a 1.3% rate in the first quarter. The economy grew at a 4.4% pace in the ‌July-September quarter.

Business sales shot up 1.7% in February after rising 0.6% in January. Sales ‌at retailers increased 0.7%. At February's sales pace, ⁠it would take 1.33 ‌months for businesses ​to clear shelves, down from 1.35 months in January.

(Reporting by Lucia Mutikani; Editing by Chizu ‌Nomiyama)



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