WASHINGTON, Aug 14 ( ) - U.S. business inventories were unchanged in June as an increase in stocks at wholesalers was offset by a decline at retailers, reflecting strong domestic demand in the second quarter. The flat reading in inventories followed a 0.4% rise in May, the Commerce Department's Census Bureau said on Friday. Economists polled by had forecast inventories, a key component of gross domestic product and one of the most volatile, edging up 0.1% in June.
Inventories increased 3.0% year-on-year in June. Business inventories have been drawn down for five straight quarters amid robust domestic demand, a mix of consumer spending and business investment tied to artificial intelligence. They subtracted from gross domestic product growth in the second quarter.
The economy grew at a 1.5% annualized rate last quarter, though domestic demand increased at its fastest pace in more than three years. Retail inventories fell 0.2% in June instead of being unchanged as estimated in an advance report last month. Motor vehicle inventories rose 0.4% as previously reported.
They increased 0.9% in May. Retail inventories excluding autos, which go into the calculation of GDP, dropped 0.4% instead of falling 0.2% as estimated last month. They gained 0.7% in May. Wholesale inventories rose 0.2% in June while stocks at manufacturers edged up 0.1%.
Business sales fell 1.1% in June after dropping 2.1% in the prior month. At June's sales pace, it would take 1.30 months for businesses to clear shelves, up from 1.28 months in May. The inventories/sales ratio was at 1.39 months in June 2025. (Reporting by Lucia Mutikani; Editing by Andrea Ricci )
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