Story perspectives

U.S. Wholesale Inventories Drop 0.5%, Sales Rise 1%

2/8/2025

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Summary

U.S. Wholesale Inventory Decline

U.S. wholesale inventories declined by 0.5% in December, aligning with economist predictions at $898.5 billion.
Durable goods inventories fell by 0.6%, while nondurable goods saw a 0.2% decrease.
Wholesale sales increased by 1% to $687 billion, with durable goods sales rising by 0.1% and nondurable goods by 2%.
The inventories-to-sales ratio dropped to 1.31 from 1.35 year-over-year.

Summary

Manufacturing Growth Resumes

The ISM Manufacturing PMI® increased to 50.9% in January, signaling growth after 26 months of decline.
Eight industries, including chemicals and textiles, experienced expansion, while order backlogs and raw materials inventories decreased.
Chemical construction spending rose by 1.7% in December, marking a 17% increase year-over-year.
Light vehicle sales dropped to a 15.6 million annual rate in January due to severe winter weather.
Global chemical production grew by 4.2% year-over-year, led by North America and Asia.

History

Historical Context

The recent decline in U.S. wholesale inventories echoes the 2008 financial crisis, where businesses faced similar inventory challenges amid economic uncertainty. The shift toward inventory optimization, initiated then, continues to shape current practices, emphasizing efficiency and demand forecasting to mitigate economic fluctuations.

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U.S. Wholesale Inventory Decline

U.S. wholesale inventories declined by 0.5% in December, aligning with economist predictions at $898.5 billion.
Durable goods inventories fell by 0.6%, while nondurable goods saw a 0.2% decrease.
Wholesale sales increased by 1% to $687 billion, with durable goods sales rising by 0.1% and nondurable goods by 2%.
The inventories-to-sales ratio dropped to 1.31 from 1.35 year-over-year.

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