Updated
Updated · Finimize · Aug 6
US Wholesale Sales Fall 3.0% in June as Inventories Rise 0.2%
Updated
Updated · Finimize · Aug 6

US Wholesale Sales Fall 3.0% in June as Inventories Rise 0.2%

3 articles · Updated · Finimize · Aug 6

Summary

  • US wholesale sales dropped 3.0% in June after a 3.5% gain in May, while inventories still edged up 0.2%, leaving more goods sitting in warehouses.
  • The Census Bureau revised the inventory increase down to 0.2%; stockpiles were still 4.2% above a year earlier as durable goods rose 0.6% and nondurables fell 0.6%.
  • Petroleum inventories slid 3.9%, pulling down nondurables, while gains in motor vehicles, computer equipment, hardware and machinery lifted durable-goods stockpiles.
  • The inventory overhang pushed the months-to-clear measure up to 1.19 from 1.15, a sign wholesalers may cut reorders, weighing on factory output, freight demand and near-term US growth.

Insights

Why are U.S. wholesalers holding more goods just as sales fall, and could that trigger production cuts and discounting next?
Is the jump in the wholesale inventory-to-sales ratio a temporary blip, or an early warning of a broader inventory correction?
Which industries will feel the pain first if wholesalers slow reorders and work down rising stockpiles?