U.S. Business Inventories

U.S. Business Inventories tracks the value of goods held by manufacturers, wholesalers and retailers, providing a broad view of stock levels across the business sector.

Economic IndicatorsLow volatilityUnited States Business InventoriesTotal Business InventoriesManufacturing and Trade Inventories and Sales inventoriesMTIS

Full explanation

U.S. Business Inventories measures the dollar value of goods held in stock by manufacturers, wholesalers and retailers at the end of the month. The month-over-month figure shows how total inventories changed from the prior month, helping users see whether businesses are adding to or drawing down stock. The U.S. Census Bureau publishes it in the Manufacturing and Trade Inventories and Sales report, which combines information from the Monthly Retail Trade Survey, Monthly Wholesale Trade Survey and Manufacturers’ Shipments, Inventories and Orders Survey. It is usually read alongside business sales and the inventories-to-sales ratio to judge whether stock levels look lean or excessive relative to demand.

Why traders watch it

Traders watch business inventories because inventory accumulation or liquidation can affect GDP accounting, production plans and expectations for future orders. The release can also refine views on demand conditions after retail sales, wholesale trade and factory orders data have already been published.

Stronger vs weaker outcomes

A larger-than-expected rise can suggest firms are rebuilding stocks, but it may also point to unsold goods if sales are weak. A smaller rise or decline can suggest inventories are being worked down, which may be constructive if driven by strong sales, but negative if it reflects cautious production planning.

Typical volatility

Low. The data are nominal dollar estimates and can be affected by price changes as well as physical stock volumes. Revisions to retail, wholesale or manufacturing components can change the interpretation, and the release is often less market-moving than earlier indicators covering the same sectors.

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