The U.S. Census Bureau released its advance statistic for international trade, wholesale inventories and retail inventories for January on Feb. 28, showing a substantial jump for wholesalers following a four-month slide.

The figures showed that January wholesale inventories — adjusted for seasonal and trading day differences, but not for price — ended the month at $905.2 billion, up 0.7% from December and up 1.1% year-over-year. The November to December change was revised from -0.5% to -0.4%.

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Meanwhile, January durable goods inventories increased 0.8% vs. December and were up 1.1% year-over-year, while nondurable goods were up 0.6% vs. December and likewise up 1.8% year-over-year.

Retail inventories went in the opposite direction in January, ending the month down 0.1% from December to $821.3 billion. That figure was up 4.9% year-over0year. The November to December change was revised from -0.4% to -0.5%.

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The Bureau reported the U.S. international trade deficit was $153.3 billion in January, up $31.2 billion from December. Exports of goods for January were $172.2 billion, up $3.3 billion month-to-month. Imports of goods for January were $325.4 billion, up $34.6 billion from December.

The final numbers for February wholesale inventories will be included in the Bureau’s monthly wholesale trade report on March 27, along with the February 2025 advance report for wholesale and retail inventories.

U.S. Wholesale Inventories Month-to-Month

source: tradingeconomics.com

MDM’s Take

Amid the Trump administration’s aggressive tariff policies that include 25% levies against goods from Canada and Mexico and 20% against China — all set to take effect March 4 (as of Feb. 27) — many distributors may have opted to front-load their inventories in January and February to bulk up on stock before these tariffs take place. January’s major monthly gain may be reflective of this, and February’s wholesale trade report — set to release March 6 — may help confirm if this has been the case.

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