U.S. Wholesale Inventories Increase in September; Sales Jump

Summary

• U.S. wholesale inventories rose 0.7% in September, marking the eighth consecutive monthly gain & a 7.6% year-over-year increase, the fastest pace since March 2023.
• Durable goods inventories increased 0.6% month-over-month for the 11th straight month, rising 8.0% year-over-year.
• Nondurable goods inventories climbed 0.9% month-over-month, the seventh rise in eight months, with a 7.0% year-over-year increase.
• Wholesale sales jumped 2.8% in September, the 12th gain in 13 months, driven by a 1.3% rise in durable goods sales & a 4.4% surge in nondurable goods sales.
• The inventory-to-sales ratio fell to 1.21 in September, matching its lowest level since May.
• Electrical & electronic goods led durable goods inventory growth with a 2.5% monthly advance, while metals & minerals, motor vehicles & parts, & machinery inventories declined.
• Petroleum & petroleum products drove nondurable goods inventory growth with a 10.6% monthly rebound, whereas farm products, alcoholic beverages, & groceries inventories fell.
• Metals & minerals led durable goods sales with a 6.7% monthly increase, while motor vehicles & parts, furniture & home furnishings, hardware, plumbing & heating equipment, & lumber & other construction materials sales decreased.
• Petroleum & petroleum products surged 18.8% in nondurable goods sales, while drugs, paper & paper products, & apparel sales declined.
• The durable goods inventory-to-sales ratio dipped to 1.49, its lowest since July 2021, while the nondurable goods ratio eased to 0.92, its lowest since May.