The Commerce Department announced on Tuesday that business inventories fell 1.3 percent m-o-m in April, following a revised 0.3 percent m-o-m decline in March (originally, a drop of 0.2 percent m-o-m).

That was worse than economists’ forecast for a 0.8 percent m-o-m decrease.

According to the report, stocks at retailers plunged 3.7 percent m-o-m in April, while those at manufacturers declined 0.4 percent m-o-m. At the same time, inventories at wholesalers rose 0.3 percent m-o-m.

In y-o-y terms, business inventories fell 2.2 percent in April.