Business Inventories MoM

What is Business Inventories MoM?

The Business Inventories report, released monthly by the Census Bureau, measures the total value of unsold goods held by manufacturers, wholesalers, and retailers at the end of the reference month. It also includes the inventories-to-sales ratio, which shows how many months of supply are currently on hand at the current sales rate.

Why does it matter for investors?

Inventory levels are a key component of GDP (change in private inventories contributes to quarterly GDP growth). A rapid inventory buildup — particularly when sales are slowing — creates a future GDP drag, as businesses cut orders and production to work down excess stock. An unintended inventory build (inventories rising faster than sales) is a leading indicator of production slowdowns and potential layoffs in the goods sector.

What to watch for

• ›Inventories-to-sales ratio vs. prior month and historical norms
• ›Retail vs. wholesale vs. manufacturing breakdown
• ›Unintended vs. intended inventory build (context from ISM and sales data)
• ›GDP tracking implications: inventory changes feed directly into quarterly GDP