US business inventories post biggest gain in nearly four years in March

[WASHINGTON] US business inventories increased by the most in nearly four years in March, boosted by stocks at wholesalers, government data showed on Thursday (May 14).

Inventories rose 0.9 per cent, the largest gain since June 2022, after climbing 0.4 per cent in February, the Commerce Department’s Census Bureau said on Thursday. Economists polled by Reuters had expected inventories, a key component of GDP and one of the most volatile, to increase 0.8 per cent in March.

Inventories advanced 2.0 per cent year-on-year in March. The government estimated last month that business inventories added 0.40 percentage point to the 2.0 per cent annualised rate of increase in the GDP in the first quarter. The economy grew at a 0.5 per cent pace in the October-December quarter.

Retail inventories increased 0.6 per cent in March after being unchanged in February. Wholesale inventories jumped 1.3 per cent while stocks at manufacturers rose 0.6 per cent.

Business sales increased 2.1 per cent in March after rising 1.8 per cent in the prior month. At March’s sales pace, it would take 1.32 months for businesses to clear shelves, down from 1.33 months in February. The inventories/sales ratio was at 1.38 months in March 2025. REUTERS