Wholesale and retail businesses took a step back from building inventories in September, Commerce Department data showed Wednesday.
Wholesale inventories grew by 0.8 percent last month after rising an upwardly revised 1.4 percent in August. Economists had forecast a stronger gain of 1.1 percent, with estimates ranging between 0.9 percent and 1.1 percent.
The smaller-than-expected gain indicates that wholesalers have turned even more cautious than expected as consumers are squeezed by inflation and rising interest rates.
Wholesale inventories of durable goods rose 1.1 percent, a slowdown from the 1.5 percent increase in the prior month. Nondurable goods inventories rose 0.4 percent, down from 1.3 percent a month earlier.
Retail inventories rose just 0.4 percent. Excluding autos, retail inventories fell 0.1 percent after rising 0.7 percent in August. A report from Deloitte last week showed that consumers expect to spend about as much during this year’s holiday shopping season as they did last year. But since prices are much higher, this means consumers will be buying fewer items\ The number of gifts households expect to purchase has plummeted by nearly half, falling to nine from 16 last year, according to the survey.
Motor vehicle inventories rose 1.9 percent after jumping 3.5 percent in August.