US business inventories increased 0.1% MoM (vs 0.2% MoM expected) and 2.5% YoY in March.

• On an annual basis, business inventories are up 2.5% YoY after strong inventory builds in Q1 2025 that were abnormal based on seasonality trends.
• Manufacturers’ inventories increased 0.1% MoM, and wholesalers’ inventories increased 0.4% MoM.
• Retailers’ inventories fell -0.2% MoM, the second straight decline, but are still up 4.7% YoY. Excluding autos, retail inventories were up 0.4% MoM as auto inventories dropped -1.3% MoM due to a sharp increase in sales in March