New Data Confirm Economic Slowdown

Businesses stockpiled more goods in the spring as consumer spending slowed, new government figures showed.

Analysts said they are just the latest signs pointing to production cutbacks and weak growth for the economy.

The Commerce Department said Wednesday that inventories rose in April for the 13th straight month, an 0.8 percent gain led by a buildup in interest-sensitive durable goods.

Meanwhile, sales fell 0.4 percent in April on top of a 0.1 percent decline in March, marking the first time in more than four years that they have slipped for two straight months.

“The sound you hear from America’s warehouses is the sound of inventory being put back on shelves,” said Ron Schreibman of the National Association of Wholesaler-Distributors.

Meanwhile, the Labor Department reported that the productivity of American workers increased 2.7 percent at an annual rate in the first quarter while unit labor costs rose 1.6 percent - far less than expected.