Wholesale Inventories

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Definition of 'Wholesale Inventories'

Wholesale inventories refer to the total amount of goods and products held in inventory by wholesalers. These inventories represent the stock of goods that wholesalers have purchased from manufacturers and other suppliers, and are available for sale to retailers and other customers.

Wholesalers are intermediaries between manufacturers and retailers or other end-users, and typically purchase goods in large quantities to take advantage of volume discounts. They then store these goods in warehouses and distribution centers until they are sold to retailers or other customers.

Wholesale inventories can be an important indicator of economic activity, as changes in inventory levels can reflect changes in demand and production. When wholesale inventories are rising, it can indicate that wholesalers are stocking up in anticipation of increased demand, which can be a positive sign for future economic growth. Conversely, when wholesale inventories are declining, it can indicate weaker demand and slower economic activity.

The U.S. Census Bureau regularly releases data on wholesale inventories as part of its monthly Wholesale Trade Report. This report provides information on wholesale inventories, sales, and inventory-to-sales ratios across various industries, and is closely watched by economists and investors as a gauge of overall economic activity.

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