A US economic report measuring the total value of goods held by manufacturers, wholesalers, and retailers. Rising inventories can signal slowing demand, while falling inventories may indicate strong sales. Traders monitor this report monthly as unexpected changes in inventory levels can influence GDP forecasts and shift sentiment across equity and bond markets.
Example
“Business inventories rose 0.4% last month, suggesting that consumer demand may be cooling and prompting traders to reassess their equity positions.”