U.S. Wholesale Inventories Increase 0.2% in July 2024, Below Expected 0.3% Growth

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U.S. Wholesale Inventories Rise by 0.2% in July 2024, Below Advance Estimates

Team FS

09/Sep/2024

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U.S. wholesale inventories increased by 0.2% in July, slightly missing the expected 0.3% rise.

Nondurable goods stocks rose faster, driven by a sharp increase in drugs.

Durable goods rebounded modestly, but declines in metals and miscellaneous durables offset stronger sectors.

In July 2024, U.S. wholesale inventories rose by 0.2% month-over-month, reaching $903.5 billion, according to the latest data from the U.S. Census Bureau. This increase came in slightly below the advance estimate of 0.3%, reflecting a slower-than-expected growth in wholesale stockpiles. The previous month saw a revised flat reading, highlighting a steady but cautious buildup in inventories.

The rise in nondurable goods inventories outpaced durable goods, increasing by 0.5% compared to the 0.4% growth in June. The primary drivers were higher inventories in the drug sector, which surged 2.5%, and miscellaneous nondurables, which rose 0.8%.

On the other hand, durable goods inventories experienced a modest 0.1% rebound after declining 0.2% in June. Growth was seen in sectors such as computer equipment (1.4%), professional equipment (1.3%), and automotive (1%). These gains offset sharp declines in metals and miscellaneous durables, both of which dropped by 1.3%.

On a year-over-year basis, wholesale inventories increased by 0.4% in July, slightly underperforming compared to the earlier estimated 0.6% annual growth. Despite the slower inventory buildup, the data suggests that certain sectors are recovering more robustly, particularly within nondurables and high-tech durable goods like computer equipment.

The inventory data is closely monitored as it provides insights into supply chain dynamics and potential pressures on future economic growth. Elevated inventories in sectors like drugs and automotive hint at strong demand, while the decline in metals may reflect ongoing challenges in the commodities market.

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U.S. Wholesale Inventories Rise by 0.2% in July 2024, Below Advance Estimates

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