WASHINGTON, Oct 8 (Reuters) – US wholesale inventories increased less than initially thought in August as strong demand boosted sales, government data showed on Thursday.
Stocks at wholesalers rose by a downwardly revised 0.5%, the Commerce Department’s Census Bureau said. Inventories, a key part of gross domestic product, were previously reported to have increased 0.7% in August. They surged 1.4% in July. Inventories advanced 6.4% on a year-over-year basis in August.
Durable goods inventories at wholesalers rose 0.8%, but stocks of nondurable were unchanged, with petroleum declining 3.9%. Businesses are rebuilding inventories, which have been drawn down for five straight quarters amid robust domestic demand, mostly consumer spending and investment in AI.
That has resulted in a jump in imports. Capital goods imports hit a record high in August, the government reported this week, a sign that business spending on equipment likely remained robust in the July-September quarter.
Economists estimate that trade could subtract as much as 2.5 percentage points from third-quarter GDP growth. They, however, expect a contribution from inventories after they cut off 0.53 percentage point in the second quarter.
Growth estimates for the third quarter are mostly around a 3.0% annualized rate, also accounting for strong consumer spending. The economy grew at a 2.2% pace in the second quarter.
Sales at wholesalers accelerated 1.8% in August after rebounding 1.0% in July. At August’s sales pace it would take 1.18 months to clear shelves, down from 1.19 months in July. The inventories/sales ratio was at 1.28 months in August 2025.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
Comments