U.S. wholesale inventories extend gains in April as supply risks lift stockpiling

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U.S. wholesale inventories rise in April

Highlights

U.S. wholesale inventories rose 0.6% in April, marking a third straight monthly gain, led by a 0.9% increase in durable goods.
Wholesaler sales increased 2.0% in April, pushing the inventories-to-sales ratio to 1.19 months, the lowest since December 2013.
Inventory accumulation reflects hedging against supply risks from the U.S.-Israeli war with Iran, with wholesale inventories up 3.6% year-on-year in April.

April inventory build and sales trend

As reported by the Commerce Department's Census Bureau, stocks at U.S. wholesalers rise 0.6% in April, revised up from the 0.5% increase estimated last month. The latest reading marks a third consecutive monthly gain in wholesale inventories.

The increase is led by a 0.9% jump in inventories of durable goods, including professional equipment and electrical products. Stocks of nondurable goods gain 0.2%, as increases in groceries and petroleum are partly offset by declines in apparel and medication.

Sales at wholesalers increase 2.0% in April after advancing 3.0% in March. At April's sales pace, it would take 1.19 months to clear shelves, the lowest level since December 2013 and down from 1.21 months in March.

Economic and sector implications

Inventory accumulation appears to reflect efforts by businesses to hedge against shortages and elevated prices linked to the U.S.-Israeli war with Iran, now in its fourth month. The conflict continues to disrupt shipments of oil and other commodities, adding pressure to supply chains.

The report follows an Institute for Supply Management survey last week showing a measure of inventories at services businesses hitting a 10-year high in May. Wholesale inventories, a key component of gross domestic product, increase 3.6% from a year earlier in April.

Business inventories have a neutral impact on first-quarter GDP growth after being drawn down for four straight quarters. The U.S. economy grows at a 1.6% annualized rate in the January-March quarter after slowing to a 0.5% pace in the fourth quarter, while the wholesale inventories-to-sales ratio stands at 1.30 months in April 2025.

Our earlier coverage of the April U.S. goods and services trade balance noted that the deficit narrowed slightly to $55.9 billion as both exports and imports increased. We highlighted that the improvement was driven by a smaller goods deficit, while year-to-date the trade gap was sharply lower than the same period in 2025, reflecting stronger exports and reduced imports overall.

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