This page tracks total business inventories in the United States, which represent the dollar value of goods held by manufacturers, wholesalers, and retailers. Inventories play a critical role in the economic cycle: rising inventories can signal slowing demand, while falling inventories may indicate strong sales or supply shortages.
Because inventories feed directly into GDP calculations, this indicator is closely watched for insights into economic momentum.
What This Chart Shows
- The total value of inventories held across the U.S. supply chain
- Inventory buildups during periods of slowing demand
- Inventory drawdowns during strong sales or supply constraints
- Cyclical patterns tied to manufacturing, retail, and wholesale sectors
- How inventory swings contribute to quarterly GDP volatility
Key Takeaways
- Inventories are a key component of GDP and economic growth
- Rising inventories may signal weakening demand or overproduction
- Falling inventories can indicate strong sales or supply shortages
- Inventory cycles often lead turning points in the broader economy
- Best interpreted alongside Retail Sales, Durable Goods, and Industrial Production
Data Source
U.S. Census Bureau via FRED®