US Wholesale Inventories Increase for Third Straight Month in April

U.S. wholesale inventories increased more than initially thought in April, likely reflecting stock building to hedge against shortages and high prices stemming from the war with Iran.

Stocks at wholesalers rose 0.6%, revised up from the 0.5% gain estimated last month, the Commerce Department’s Census Bureau said on Tuesday. Wholesale inventories have now increased strongly for three straight months.

The report followed an Institute for Supply Management survey last week showing a measure of inventories at services businesses hitting a 10-year high in May. The U.S.-Israeli war with Iran, now in its fourth month, has disrupted shipments of oil and other commodities, driving up prices.

The increase in wholesale inventories was led by a 0.9% jump in stocks of long-lasting manufactured goods, including professional equipment and electrical products.

Stocks of nondurable goods gained 0.2% as increases in groceries and petroleum were partially offset by declines in apparel and medication.

Inventories, a key part of gross domestic product, increased 3.6% on a year-over-year basis in April. Business inventories had a neutral impact on GDP growth in the first quarter. They have been drawn down for four straight quarters. The economy grew at a 1.6% annualized rate in the January-March quarter after slowing to a 0.5% pace in the fourth quarter.

Sales at wholesalers increased 2.0% in April after advancing 3.0% in March. At April’s sales pace it would take 1.19 months to clear shelves, the lowest  since December 2013 and down from 1.21 months in March. The inventories/sales ratio was at 1.30 months in April 2025.

(Reporting by Lucia Mutiikani; Editing by Andrea Ricci )

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