📦 Summary of the Wholesale Inventories Report

The Wholesale Inventories report, published by the U.S. Census Bureau, provides monthly data on the value of inventories held by merchant wholesalers in the United States, excluding manufacturers’ sales branches and offices. This report is a key economic indicator, offering insights into supply chain dynamics, business expectations, and the broader economic environment.

Overview of the Latest Data

For September 2025, the report shows:

  • Total Wholesale Inventories: $911.5 billion (seasonally adjusted, not adjusted for price changes), up 0.5% from August 2025 and up 1.8% from September 2024.
  • Wholesale Sales: $708.2 billion, down 0.2% from August 2025 but up 4.8% from September 2024.
  • Inventories/Sales Ratio: 1.29 in September 2025, compared to 1.33 in September 2024.

Key Details and Trends

  1. Data Collection and Methodology 📊
    • The report is based on a probability sample of about 4,200 wholesale firms.
    • Data is collected monthly, with about 54% of firms responding for this period.
    • Estimates are adjusted for seasonal variation and trading day differences, but not for price changes.
    • Nonresponse is handled by imputing data from similar firms.
  2. Recent Changes and Revisions 🔄
    • The August 2025 inventory figure was revised to $907.4 billion, a 0.1% decrease from July (statistically insignificant).
    • The July-to-August sales change was revised from a 0.1% increase to a 0.2% decrease.
    • The report notes that changes within the 90% confidence interval that include zero are not statistically significant.
  3. Year-over-Year Perspective 📈
    • Inventories are up 1.8% from September 2024, indicating moderate inventory growth.
    • Sales have grown more robustly, up 4.8% year-over-year, suggesting strong demand or improved turnover.
    • The inventories/sales ratio has declined from 1.33 to 1.29, reflecting faster sales growth relative to inventory accumulation.
  4. Economic Interpretation 💡
    • A declining inventories/sales ratio can signal that wholesalers are selling goods faster than they are restocking, which may indicate strong demand or leaner inventory management.
    • Modest inventory growth alongside stronger sales growth suggests that wholesalers are cautious about overstocking, possibly due to economic uncertainty or supply chain considerations.
    • These trends can impact GDP calculations, as inventory changes are a component of economic growth measurement.
  5. Sectoral Insights 🏭
    • The report provides breakdowns by durable and nondurable goods, with some sectors (like automotive and petroleum) showing higher volatility.
    • For example, automotive wholesale inventories and sales tend to be more variable, reflecting industry-specific cycles.
  6. Limitations and Reliability ⚠️
    • The report is subject to sampling and nonsampling errors, including nonresponse and reporting inaccuracies.
    • Figures are not adjusted for inflation, so real inventory values may differ if prices change significantly.
    • The confidence intervals indicate that some monthly changes may not be statistically significant.

Summary

The September 2025 Wholesale Inventories report shows that U.S. merchant wholesalers are maintaining moderate inventory growth while experiencing robust sales increases. The inventories/sales ratio has declined, suggesting that goods are moving through the supply chain more quickly than a year ago. This pattern points to healthy demand and cautious inventory management, which can be positive for economic stability but may also reflect ongoing supply chain adjustments. The report’s data, while subject to revision and statistical uncertainty, is a valuable indicator of business sentiment and economic momentum in the wholesale sector.

References: 

Wholesale Inventories, U.S. Census Bureau

Find out how the Wholesale Inventories report impacts you and your business.