Wholesale Inventories Fall 0.1% in April; Sales Rise 0.8%

Inventories at U.S. wholesalers declined in April for the first time in eight months as companies tried to keep up with increased demand, the Commerce Department reported Wednesday.

The 0.1% decline in stockpiles followed a 0.5% increase in March and left the value of goods at distribution centers, warehouses and terminals at $301.2 billion.

Economists told Bloomberg News that depleted inventories suggest companies will have to order more from factories and suppliers to catch up with demand, spurring production and adding to growth. That would also increase the demand for trucking services.

Commerce also said wholesale sales rose 0.8% in April after a 2.9% gain in March that was the largest in more than nine years.

Inventories relative to sales dropped to a record low of 1.12 month's supply in April from 1.13 months, Commerce said.

Wholesale inventories of durable goods, including furniture and imported vehicles made to last at least three years, were unchanged April after rising 0.9% the month before. Wholesale sales of durable goods rose 1.5% in April.

Wholesalers account for about 25% of all business inventories. Retailers and factories make up the rest.