U.S. business inventories increased by 0.5% month-on-month in April, and the inventory-to-sales ratio fell to 1.31 months.

⑴ Data from the U.S. Department of Commerce shows that commercial inventories in April increased by 0.5% month-on-month, in line with market expectations. The previous value was revised from 0.9% to 1.0%. Retailers' inventories grew by 0.7%, wholesalers by 0.6%, and manufacturers by 0.3%. ⑵ April commercial sales increased by 1.2% month-on-month, down from the previous value of 2.2%. Wholesale sales grew by 2.0%, manufacturers' sales by 1.0%, while retailers’ sales rose only 0.3%. Sales of automobiles and auto parts fell by 0.9%. ⑶ The inventory-to-sales ratio fell from 1.32 months in March to 1.31 months, lower than 1.38 months in April last year, indicating that inventory remains at a reasonable level relative to sales. ⑷ The total value of business inventories rose to about $2.73 trillion, an annual growth rate of 2.7%; total sales grew at an annual rate of 8.7%, reflecting continued resilience in overall economic activity.