April data shows inventories growing in line with expectations, while sales growth slows, keeping the inventory-to-sales ratio stable.
US business inventories increased 0.5% in April, matching consensus estimates and following a 0.9% rise in March. The report, compiled by the Census Bureau, combines retail, wholesale, and manufacturing data to provide a broad view of stock levels across the economy.
Retail inventories excluding autos rose 0.6%, unchanged from the prior month. The inventory-to-sales ratio held at 1.31 months, down from 1.32 in March, signaling leaner stockpiles relative to demand. Business sales grew 1.2%, slowing from a 2.2% gain in March, while total inventories reached $2,709.7 billion.
The data, though rarely a market mover, offers early insight into Q2 GDP trends. The stable ratio suggests businesses remain cautiously stocked, reducing risks of forced liquidation.