US business inventories increased 0.2% MoM in February, in line with expectations, building on the 0.3% MoM increase in January.

• On an annual basis, business inventories are up 2.1% YoY after two inventory builds at the beginning of 2025 that were abnormal based on seasonality trends.
• Manufacturers’ and retailers’ inventories both increased 0.1% MoM wholesalers increased inventories 0.3% MoM.
• With sales falling in February, the inventories/sales ratio fell to 1.35x from 1.36x in January with the wholesale inventories/sales ratio down to 1.30x from 1.32x.