The US Commerce Department has reported that wholesale inventories remained flat in March month-on-month, despite analysts’ expectations of a 0.1% increase.
The report, released on Monday, showed that business owners took an average of 1.4 months to sell out of their stock in March, a slight increase from 1.37 months in February. This indicates that businesses are not restocking their inventories at a significant rate, possibly due to uncertainty about the economic recovery or supply chain disruptions.
Wholesale inventories represent goods held by wholesalers and are often used as a leading indicator of economic activity. The flat reading in March suggests that businesses may be cautious about increasing their inventories in anticipation of future demand.
The Commerce Department report also showed that sales at the wholesale level increased by 4.6% in March, compared to the same period last year. This indicates that businesses are able to move their existing inventory, despite not increasing it significantly.
The report is the latest sign of a mixed economic recovery in the US, with some sectors experiencing rapid growth while others struggle to regain their footing. The Commerce Department will release the next wholesale inventory report in June, providing further insight into the state of the US economy.