• Prior month Wholesale inventories 0.7% (revised from 0.5% initially reported)
• Prior month retail inventories 0.7%

May Advance Inventories Report – Key Takeaways

• Wholesale inventories: Rose 0.3% in May to $944.0 billion.
• Annual change in wholesale inventories: Up 4.3% versus May 2025.
• April wholesale inventory revision: Revised higher to +0.7% from the preliminary estimate of +0.6%.
• Retail inventories: Increased 0.6% in May to $832.2 billion.
• Annual change in retail inventories: Up 3.4% from May 2025.
• April retail inventory growth: Remained unrevised at +0.7%.

Market Implications

• Inventory growth at both the wholesale and retail levels suggests businesses continue to rebuild stockpiles. That can be good or bad. If stockpiles are rising because sales are slower it is unwanted inventories. If it is to meet demand, it is good growth.
• The upward revision to wholesale inventories could provide a modest boost to estimates for Q2 GDP, as inventory accumulation contributes positively to economic growth.
• Retail inventories increased at a faster pace than wholesale inventories in May (+0.6% vs. +0.3%), indicating retailers may be preparing for stronger consumer demand in the coming months OR they may not be selling either.
• Overall, the data point to steady business activity and resilient supply chains, though larger inventory buildups can become a headwind if demand slows unexpectedly.

For background, the Monthly Wholesale Trade Survey , conducted by the U.S. Census Bureau, is one of the government’s key economic indicators, tracking sales, end-of-month inventories, and inventories-to-sales ratios for merchant wholesalers across the country. The survey excludes manufacturers’ sales branches and offices, as well as wholesale electronic markets, agents, and brokers. Each month, the Census Bureau surveys a probability sample of approximately 4,200 employer firms, stratified by industry and sales size, with estimates adjusted for seasonal variation and trading day differences but not for price changes.

The wholesale sector serves as a critical intermediary in the U.S. supply chain, connecting manufacturers and producers with retailers and other businesses. Because wholesalers sit between production and final sale, their sales and inventory levels offer valuable signals about the direction of broader economic activity — rising inventories relative to sales can suggest slowing demand, while falling ratios may indicate strengthening conditions.

This article was written by Greg Michalowski at investinglive.com.