US Wholesale Sector NAICS 42

Jul 25, 2025 - Import Cargo Levels Uneven

• According to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates, import cargo at major US container ports is expected to rebound in July 2025 following a drop in the spring, but is forecast to fall again when a tariff delay by the Trump administration ends in August. Ben Hackett, founder of Hackett Associates, said the global supply chain works best in a predictable trade environment and not with erratic policies and geopolitical volatility. He noted, “A flurry of tariff-related announcements from the Trump administration has only served to further increase supply chain uncertainty.” Tracker data showed that US ports handled 1.95 million 20-foot equivalent units (TEU) in May 2025, down 6.4% year over year, and a projected 2.0 million TEU in June 2025, expected to be down 3.7% year over year.
• The Wholesale Trade Industry is one of 10 industries reporting growth in June’s Services ISM Report on Business. Executives in the Wholesale Trade industry reported an increase in business activity, new orders, employment, order backlogs, prices paid for materials and services, and inventories along with slower supply deliveries in June. Additional industries reporting growth during the period were Other Services; Transportation & Warehousing; Utilities; Arts, Entertainment & Recreation; Management of Companies & Support Services; Public Administration; Retail Sales, Information; and Real Estate, Rental & Leasing. Six industries reporting contraction during the period were Agriculture, Forestry, Fishing & Hunting; Construction; Mining; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Educational Services. Overall, economic activity in the services sector grew in June after a contraction in May, with the Services PMI registering 50.8%.

• Consumer sentiment, an indicator of discretionary spending, increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index from the University of Michigan hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.
• According to a new survey from the National Association of Wholesale-Distributors (NAW), tariffs are driving cost increases and creating operational challenges across the wholesale distribution industry. The survey was done in collaboration with Modern Distribution Management (MDM) Research. About a third of distributors say they face price increases of 25% or higher. According to Eric Hoplin, NAW’s CEO, “Though these increases haven’t hit store shelves yet, it’s an indication of where prices are headed.” About 62% of distributors expect their cost of goods will rise by 10% or more in 2025, while 67% of respondents report a negative impact on their business. Nearly 40% of respondents said more than 20% of their inventory originates in China, and only 17% can shift to domestic or non-impacted suppliers. Operational actions being taken by distributors include slowing inventory replacement (48%), delaying new hiring (44%), cutting capital investments (37%), and reducing discretionary spending (60%).