Why This Matters to Distributors: U.S. wholesalers continued building inventories in August, pushing total stocks 6.6% above year-ago levels. The sustained increase shows more goods moving into the wholesale channel, but it does not yet indicate distributors are overstocked. August wholesale sales and inventory-to-sales ratios, due Oct. 8, will provide a clearer picture of whether inventory growth is keeping pace with demand.
U.S. wholesale inventories rose again in August, extending a months-long buildup as the value of goods held by distributors approached $1 trillion.
Wholesale inventories reached a seasonally adjusted $965.7 billion at the end of August, up 0.7% from July and 6.6% from August 2025, according to advance estimates released Sept. 30 by the U.S. Census Bureau.
The increase followed a 1.3% rise in July and marked the seventh consecutive monthly gain in wholesale inventories. Census revised the July inventory level to $959.4 billion.
Inventories of durable goods, which include products such as machinery, electrical equipment, metals and vehicles, increased 0.7% from July. Nondurable goods inventories rose 0.5%.
The continued increase puts more inventory in the wholesale channel than a year ago. But the advance figures alone do not show whether distributors are carrying too much merchandise relative to customer demand.
Census’ advance report does not include August wholesale sales or the industry’s inventory-to-sales ratio, two measures needed to assess how quickly distributors are moving their stocks. Census is scheduled to release its more detailed August wholesale trade report Oct. 8.
The inventory increase came as more imported goods entered the U.S. in August.
Goods imports rose $17.4 billion, or 5.5%, from July to $336.1 billion, according to Census. Goods exports increased $3.7 billion, or 1.9%, to $203.4 billion.
Imports of industrial supplies increased 16.6% during the month, while imports of capital goods rose 4%, according to an analysis of the Census data by Reuters.
The combination of rising imports and expanding wholesale inventories indicates that more merchandise was entering and being held in U.S. supply channels during August. Whether that inventory reflects preparation for stronger demand or a buildup of unsold goods will become clearer when the August sales data are released.
Retail inventories also increased, but at a slower pace. Retailers held an estimated $881.6 billion in inventories at the end of August, up 0.3% from July and 4.8% from a year earlier.
Wholesale inventories therefore increased faster than retail inventories on both a monthly and year-over-year basis.
The August wholesale inventory figures are preliminary and subject to revision. The estimates are adjusted for seasonal and trading-day differences but not for price changes.
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