U.S. Business Inventories Rise in February, Retailers Add Stocks Amid Strong Sales

Strategic Insights -

Business inventories in the United States rose by 0.4 percent in February to $1.091 trillion, with retailers playing a significant role in the increase. This comes as retailers added stocks to keep up with strong sales, with retail sales surging 1.7 percent in February, the largest increase in five years. Meanwhile, total sales for businesses rose 0.9 percent, and factory and wholesaler inventories also saw gains, albeit at a slower pace.

Key Takeaways:

  • Total inventories at retailers, factories, and wholesalers rose 0.4 percent to $1.091 trillion in February.
  • Retailer stockpiles led the increase, rising 0.7 percent for the third straight month.
  • Retail sales surged 1.7 percent in February, the largest increase in five years.
  • The unexpectedly large gain in inventories was driven by retailers adding stocks to meet growing demand.
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Statistics:

  • Total inventories at retailers, factories, and wholesalers rose 0.4 percent to $1.091 trillion in February.
  • Retail sales surged 1.7 percent in February, the largest increase in five years.
  • Retailer stockpiles rose 0.7 percent for the third straight month.
  • Total sales for businesses rose 0.9 percent in February.
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