U.S. Business Inventories Spring Up Slightly in April
BY PYMNTS | JUNE 15, 2023
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America’s business inventories enjoyed a slight rebound in April, according to new Commerce Department data.
A report released by the department Thursday (June 15) showed that total business end-of-month inventories for April were $2.5 trillion, up 0.2% from March. Business sales were $1.8 trillion, a 0.1% increase from the prior month.
Quoted in a report by RTT News, Oxford Economics’ Matthew Martin said that while the numbers were in keeping with economists’ expectations, “mounting headwinds from slowing wage gains and falling excess savings will slow appetites in the second half of the year.”
“As such, we continue to foresee a downturn in stocks over the balance of the year and for inventories to pose a drag on GDP growth in 2023,” Martin added.
The report came the same day that the Commerce Department released data showing retail sales up 0.3% month over month, marking a slight deceleration from the revised April estimate that showed 0.4% growth.
Drilling down into the data, PYMNTS found that spending was notably pronounced year over year in the auto/auto parts sector, as well as at grocery stores.
Consumers also appear increasingly willing to eat away from home, with food and drinking establishments’ sales rising 0.4% from April and 8% compared to last May. The numbers also showed people spending more on building materials and gardening supplies.
“The portrait that emerges, then, is of a consumer who’s fixing up the car, maybe even taking the plunge to buy a new one,” PYMNTS wrote.
“They’re getting the garden ready for spring and summer. And with the warmer weather, they are finding opportunity and interest in gathering with friends and family outside the house.”
They’re also attracting the attention of international retailers, as noted here Thursday. These companies, once focused on expanding in global markets, are increasingly interested in claiming a stake in the U.S., both online and in stores.
Worldwide brands such as Mango and Primark have begun making early expansion efforts across the country, while well-established players like Zara and Uniqlo are building on their existing presence.
“Citing geopolitical pressures, such as withdrawing from the once-lucrative Russia market after it invaded Ukraine or the rise of China’s tough local competition, brands that had once not considered entering into the highly competitive U.S. market are reexamining their sales strategy,” PYMNTS wrote.
