U.S. Wholesale Inventories Rise 0.2% in April, Exceed Forecasts

U.S. wholesale inventories rose 0.2% in April, surpassing expectations of no change and signaling modest growth in goods held by wholesalers. This increase was driven in part by stockpiling of prescription medications ahead of tariffs imposed by President Donald Trump's administration, which targeted pharmaceutical imports previously exempt from trade disputes. Despite a slower pace than the previous 0.4% increase, the inventory build reflects a cautious confidence among wholesalers, although it could also indicate a potential slowdown in demand. Wholesale sales edged up slightly by 0.1% in April, maintaining the same inventory clearance rate as the prior month. Economists note that while inventory accumulation contributed to a contraction in the first quarter GDP, the reduced front-loading of imports in April led to a record decline in the trade deficit, which may positively influence second-quarter GDP growth. Overall, the data suggests resilience in wholesale inventories amid ongoing trade tensions and economic adjustments.