The U.S. Census Bureau released its monthly wholesale trade report for May on July 9, showing a monthly decline in industry sales after a flat April, and the first decrease in inventories since December 2024.

The figure showed that May sales of merchant wholesalers — except manufacturers’ sales branches and offices, after adjustments for seasonal variations and trading differences, but not for price changes — were $697.2 billion. That was down 0.3% from the revised April level, but up 4.8% year-over-year.

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The March to April percent change was revised from the preliminary estimate of +0.1% to unchanged.

May’s monthly figure was a further deceleration that likely reflects tariff-driven uncertainty.

May durable goods wholesale trade sales ticked up 0.2% month-over-month (+0.1% in April) and increased 7.6% year-over-year, while nondurable goods fell 0.8% month-over-month but increased 2.3% year-over-year.

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Here’s how seasonally adjusted wholesale trade sales of durable and nondurable goods fared in May on both a month-over-month basis and year-over-year.

Inventories

The report showed that total inventories for merchant wholesalers ended May at $905.5 billion, down 0.3% month-over-month. Year-over-year, May inventories were down 0.3%. The April to May percent change was unrevised from its preliminary estimate of down 0.3%.

U.S. Wholesale Inventories Month-Over-Month

source: tradingeconomics.com

Inventories/Sales Ratio

The May inventories/sales ratio for merchant wholesalers increase to 1.34, following three consecutive unchanged monthly ratios of 1.30.