U.S. wholesale inventories rose 0.3% month-over-month to $902.3 billion in February 2025, easing from a revised 0.8% gain in January, according to final estimates from the U.S. Census Bureau. The moderation in inventory growth suggests that wholesalers may be adjusting their stockpiling strategies in response to evolving demand conditions and increasing uncertainty in global trade dynamics.
US wholesale inventories rise at slower pace
Within the report, durable goods inventories edged up by just 0.2%, down notably from 0.8% the previous month. The slowdown was most evident in key sectors such as professional equipment, which rose 1.2% after a sharp 3.1% gain in January, and computer equipment, which increased 2.7%, down from a previous 6.9% surge—likely reflecting some easing in post-holiday restocking and ongoing supply chain normalization. Meanwhile, several major categories posted outright declines: machinery inventories fell by 0.5%, reversing a 0.5% rise the month prior; electrical equipment dropped 0.4% after a 1.3% gain; and metal inventories dipped 0.1%, following a strong 1.5% increase in January. These declines could point to softening expectations for near-term industrial demand, particularly in capital-intensive sectors.
Nondurable goods inventories grew at a slightly stronger pace of 0.5% in February, though this too represented a slowdown from the 0.8% expansion recorded in January. Growth decelerated across several key segments, including pharmaceuticals (0.3% vs. 0.9%), grocery products (1.0% vs. 1.3%), and farm products (0.1% vs. 3.4%). Apparel inventories, meanwhile, declined by 0.3%, reversing a 0.6% rise, possibly reflecting cautious consumer spending trends amid inflationary pressures and changing seasonal demand.
Year-over-year figures
On a year-over-year basis, total wholesale inventories were up 1.1%, indicating that while inventory accumulation has continued, the pace has slowed considerably from the more aggressive restocking cycles seen in prior years. The latest data may also suggest that wholesalers are taking a more conservative approach amid growing concerns over demand volatility, tighter financial conditions, and the potential impact of renewed trade frictions on future supply chain stability.
Looking ahead, inventory trends will likely be closely watched as a barometer of business confidence and a key input into GDP calculations. A sustained slowdown in inventory accumulation could weigh on economic growth figures, while any rebound may depend heavily on clarity around trade policy and macroeconomic conditions in the coming months.
