Factory inventories rose just 0.1% in April following an upwardly revised 0.7% gain in March. These gains lowered the three month growth in inventories to 5.8%, nearly half the high rate of accumulation set last summer.

These figures have been bloated by the surge in oil prices. Less petroleum, factory inventories rose 0.1% (8.1% y/y) in April and the three month rate of accumulation slowed to 5.1% versus 10.9% in August.

A slower rate of inventory accumulation has been notable in the furniture industry where three month growth fell to 2.8% from a high of 28.4%. Accumulation of electrical equipment about halved to 9.6% and the level of computer inventories has declined versus a double digit rate of accumulation last summer. The slowdown in other industries has been widespread.

Factory shipments rose a firm 0.7% but here again the trend has weakened. Three month growth fell to 3.1% from a high of 20.4%. Less petroleum recent growth in shipments has been negative versus 17% growth a year ago.

Orders to the factory sector rose 0.9%, juiced by a 1.9% rise in durable goods orders which was unrevised from the advance report.

Unfilled orders were unchanged and the ratio of unfilled orders to shipments fell to a new low.

Do Technological Improvements in the Manufacturing Sector Raise or Lower Employment? from the Federal Reserve Bank of Philadelphia can be found here.