U.S. businesses increased their inventories in April, but their sales fell for a second consecutive month, the government reported Thursday, indicating that economic growth could be slowing. The Commerce Department said business inventories rose 0.3 percent in April, following a 0.1 percent decline the previous month. Sales fell 0.1 percent following a sharp 1.2 percent drop in March, marking the first consecutive sales declines in almost a year. More restocking of inventories helps increase economic growth because it means companies are ordering more factory-made goods. But the decline in sales could signal a slowdown in restocking in the coming months. The U.S. economy grew at a 2.4 percent annual rate in the first quarter, much faster than the 0.4 percent rate in the fourth quarter of 2012 due to stronger growth in inventory restocking. Many economists believe growth has slowed to around a 2 percent rate in the current April-June quarter.
