December Sees a Dip in Wholesale Inventories

In an expected turn of events, the United States witnessed a 0.5% decrease in wholesale inventories in December 2024, as reported by the US Census Bureau. The figures, aligning closely with market predictions, settled at $898.5 billion, marking a slight downturn from the revised November numbers.

Sales on the Rise

Contrasting the inventory dip, sales among merchant wholesalers saw a 1% increase from November, reaching $686.5 billion. This growth, adjusted for seasonal variations and trading-day differences, also represented a 2.8% rise compared to the same period in 2023, showcasing a resilient market demand.

Inventory-to-Sales Ratio Adjusts

The inventory-to-sales ratio, a critical measure of market balance, adjusted to 1.31 based on seasonally adjusted data. This figure indicates a tightening in the market, down from the 1.35 ratio observed in December of the previous year, suggesting a shift towards leaner inventory management among wholesalers.