WASHINGTON, June 9 – American wholesale inventories climbed by a larger margin than originally reported in April, as businesses appear to be building up stock reserves to protect against supply shortages and elevated costs related to the ongoing conflict with Iran.
The Commerce Department’s Census Bureau announced Tuesday that wholesaler stock levels grew by 0.6%, an upward revision from the previously estimated 0.5% increase reported last month. This marks the third consecutive month of robust growth in wholesale inventories.
The data comes after a recent Institute for Supply Management survey revealed that inventory levels at service sector companies reached a decade-high point in May. The conflict between the U.S. and Israel against Iran, which has entered its fourth month, has caused disruptions to oil and commodity shipments, pushing costs higher.
The growth in wholesale stock levels was primarily driven by a 0.9% surge in durable manufactured goods inventory, particularly professional equipment and electrical products.
Non-durable goods inventories expanded by 0.2%, with grocery and petroleum stock increases partially balanced out by decreases in clothing and pharmaceutical inventories.
Inventories represent a significant component of gross domestic product and showed a 3.6% increase compared to the same period last year in April. Business inventory levels had no effect on GDP growth during the first quarter, following four consecutive quarters of inventory reductions. Economic growth reached a 1.6% annualized rate in the first quarter, up from the fourth quarter’s 0.5% pace.
Wholesaler sales jumped 2.0% in April following a 3.0% increase in March. Based on April’s sales rate, it would require 1.19 months to empty current inventory levels, the shortest timeframe since December 2013 and an improvement from March’s 1.21 months. The inventory-to-sales ratio stood at 1.30 months in April 2025.
