By Bryan Mena
U.S. wholesale inventories increased at a robust pace in June as companies worked to restock shelves.
Inventories of U.S. merchant wholesalers rose 1.8% in June compared with the previous month, the Commerce Department said Wednesday. That marks the 24th consecutive month that inventories have increased.
In May, wholesale inventories increased by a faster 1.9% from April. From the prior year, inventories were up by 25.5%.
The ratio of inventories to sales remained at 1.26 in June, the same as the prior month. From June 2021, the ratio clocked in at 1.21.
A higher ratio, or one below parity, indicates a mismatch in supply and demand. Major retailers such as Target Corp., Walmart Inc. and Macy's Inc. have reported excess inventories, leading some to cancel orders or offer discounts. Inventory-to-sales ratios were the highest in apparel, hardware and machinery.
U.S. gross domestic product, a broad measure of all goods and services produced within the economy, fell from April to June, marking the second consecutive quarter of a contraction. Economists attributed that in part to a slower pace of inventory restocking.
Write to Bryan Mena at bryan.mena@wsj.com
(END) Dow Jones Newswires
08-10-22 1046ET
