Major U.S. retailers, including Walmart WMT.N and Target TGT.N, said last month that they were carrying too much merchandise. Inventories are being closely watched amid rising fears of a recession next year as the Federal Reserve raises interest rates to cool demand in its battle against high inflation. The strong wholesale inventory build added to news on Tuesday that the trade deficit narrowed by the most in nearly 9-1/2 years in April, in strengthening expectations for a rebound in GDP this quarter.