- Prior month wholesale sales -0.4% revised from -0.3%
- Prior month wholesale inventories for June +0.2%
Details:
Sales rose 0.3% from May (to $698.5B) and were up 5.5% year-over-year.
May's sales were revised down from −0.3% to −0.4%.
Inventories increased 0.1% from May (to $906.3B) and were up 1.3% from June 2024.
May-to-June inventory growth was revised from +0.2% to +0.1%.
The inventories-to-sales ratio declined to 1.30 from 1.35 a year ago, indicating leaner inventory levels relative to sales.
The inventory-to-sales ratio declined from 1.35 a year ago to 1.30 currently could be a worry if that were to continue to move lower. Recall from the post Covid period one supply chain issues were in full effect, the ratio moved down to around 1.20. That supply chain issue caused prices to rise sharply. The tariff situation has at potential to lower supply as goods just become too expensive to sell. So the inventory to sales ratio will be followed closely going forward. With it being at the lowest levels going back to 2022 but remained steady, the risk is to the downside which could lead to higher prices going forward.
