U.S. wholesale inventories unrevised in March

Cargo shipping containers are seen at a storage yard in Carson, California, U.S., March 11, 2022. Picture taken March 11, 2022 with a drone. REUTERS/Bing Guan

WASHINGTON, May 9 (Reuters) – U.S. wholesale inventories increased solidly in March, though the pace slowed from the prior month amid rising sales, government data showed on Monday.

The Commerce Department said wholesale inventories rose 2.3% in March as reported last month. Stocks at wholesalers climbed 2.8% in February. Economists polled by Reuters had expected inventories would be unrevised.

Wholesale inventories advanced 22.0% in March on a year-on-year basis. Inventories are a key part of gross domestic product. Wholesale motor vehicle inventories accelerated 2.4% after rebounding 1.9% in February.

Wholesale inventories, excluding autos, rose 2.3% in March. This component goes into the calculation of GDP.

Inventory investment slowed in the first quarter from the October-December period’s robust pace. That, together with a record trade deficit, weighed on gross domestic product, resulting in the economy contracting at a 1.4% annualized rate in the first quarter.

Sales at wholesalers increased 1.7% in March after gaining 1.5% in February. At March’s sales pace it would take wholesalers 1.22 months to clear shelves, unchanged from February.

Reporting by Lucia Mutikani
Editing by Paul Simao

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