Key insights
- US wholesale inventories rose 1.3% in March, driven by a surge in petroleum stocks, potentially due to concerns about the U.S.-Israel war with Iran. While inventories contributed to Q1 GDP growth, the increase in sales suggests continued demand. The slight decrease in the inventories/sales ratio indicates a healthy balance, limiting any strong bearish or bullish implications for US equities.
WASHINGTON, May 8 (Reuters) - U.S. wholesale inventories posted solid gains in March as petroleum stocks surged, suggesting companies may have front-loaded supplies in response to the war with Iran.
Stocks at wholesalers increased 1.3% after advancing 0.9% in February, the Commerce Department’s Census Bureau said on Friday. Petroleum stocks soared 33.9% after rising only 5.5% in February. The U.S.-Israel war with Iran has disrupted shipments of oil and other commodities, driving up prices.
Inventories, a key part of gross domestic product, increased 2.9% on a year-over-year basis in March.
The government estimated last week that business inventories added 0.40 percentage point to the 2.0% annualized rate of increase in the GDP in the first quarter. The economy grew at a 0.5% pace in the October-December quarter.
Sales at wholesalers surged 2.8% in March after increasing 2.6% in February. At March’s sales pace it would take 1.21 months to clear shelves, down from 1.23 months in February. The inventories/sales ratio was at 1.30 months in March 2025.