WASHINGTON: US wholesale inventories increased less than initially thought in August as strong demand boosted sales, government data showed on Thursday.
Stocks at wholesalers rose by a downwardly revised 0.5 percent, the Commerce Department’s Census Bureau said. Inventories, a key part of gross domestic product, were previously reported to have increased 0.7 percent in August. They surged 1.4 percent in July. Inventories advanced 6.4 percent on a year-over-year basis in August.
Durable goods inventories at wholesalers rose 0.8 percent, but stocks of nondurable were unchanged, with petroleum declining 3.9 percent. Businesses are rebuilding inventories, which have been drawn down for five straight quarters amid robust domestic demand, mostly consumer spending and investment in AI.
That has resulted in a jump in imports. Capital goods imports hit a record high in August, the government reported this week, a sign that business spending on equipment likely remained robust in the July-September quarter.
Economists estimate that trade could subtract as much as 2.5 percentage points from third-quarter GDP growth. They, however, expect a contribution from inventories after they cut off 0.53 percentage point in the second quarter. Growth estimates for the third quarter are mostly around a 3.0 percent annualized rate, also accounting for strong consumer spending. The economy grew at a 2.2 percent pace in the second quarter. Sales at wholesalers accelerated 1.8 percent in August after rebounding 1.0 percent in July.
At August’s sales pace it would take 1.18 months to clear shelves, down from 1.19 months in July. The inventories/sales ratio was at 1.28 months in August 2025.