According to the Commerce Department's Census Bureau, inventories rose 0.5% in April after increasing 1.0% in March. Compared with a year earlier, inventories were up 2.7% in April.

Inventories had been reduced for four consecutive quarters and had an almost neutral effect on the economy's 1.6% annualized growth rate in the first quarter.

Retail inventories rose 0.7% in April, in line with the estimate released last month, following a 0.8% increase in March. Motor vehicle inventories increased 0.8%, revised down slightly from the previously reported 0.9%, after rising 1.2% in March.

Retail inventories excluding automobiles, a component used in GDP calculations, increased 0.6% in April, matching last month's estimate and the gain recorded in March.

Wholesale inventories climbed 0.6% in April, while inventories held by manufacturers increased 0.3%.

Business sales rose 1.2% in April after surging 2.2% in March. At April's sales pace, businesses would take 1.31 months to clear inventories, down from 1.32 months in March. The inventories-to-sales ratio stood at 1.38 months in April 2025.

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