Wholesale inventories decreased to $896.2 billion in March, a 0.4% drop from the previous month, according to the Census Bureau's advanced estimate. The 0.5% gain in wholesale inventories reported in February was revised slightly lower to 0.4%. Wholesale inventories have declined 2.1% over the last year. The US trade deficit grew 1.7% to $91.8 billion, the most significant deficit in nearly a year.

US GDP grew at a 1.6% annualized pace in the first quarter after adjustments for inflation and seasonality, according to the Commerce Department, a smaller gain than economists had expected. Meanwhile, consumer spending rose 2.5% after climbing 3.3% in the fourth quarter of 2023.

The US Chamber of Commerce, the Business Roundtable and two Texas-based business groups have brought a lawsuit challenging the Federal Trade Commission's rule prohibiting the use of noncompete provisions for many workers. Under the rule, approved in a 3-2 vote this week, existing noncompete agreements could remain in effect for senior executives.

Looking at generative AI as a way to reduce labor costs is an error, says a Gartner report, which recommends using it to empower and retain employees instead. Entry level workers can't be replaced by generative AI, says the report, which also advises supply chain leaders to communicate clearly and consistently about its role in their work.

A federal initiative announced by the Biden administration on Wednesday will allocate $1.5 billion to increase the use of zero-emission freight vehicles as part of federal pollution-reduction efforts. The Environmental Protection Agency will manage $1 billion of the funds, which will be used to replace heavy-duty vehicles with zero-emission alternatives, support charging and fueling infrastructure and mitigate pollution.

Double-digit increases in air cargo demands over the past four months reflect industry changes to accommodate disruption on Red Sea shipping lanes and increased booking demands by Chinese e-commerce, as do rising rates. Capacity may be strained, says logistics provider Dimerco Express, as online retailers such as Shein continue to need a large proportion of available air cargo space.

Inaccurate information is the biggest barrier hampering business-to-business buyers when purchasing online, especially in relation to delivery times, pricing and stock availability, according to a Sana study. B2B buyers also say they want to be able to easily find their outstanding invoices and the history and status of orders.

Data shows that retaining and engaging employees is paramount for executives, which is good since other research reveals few employees are engaged, and many may be eyeing the exit, says S. Chris Edmonds. Employees want to be respected and validated, Edmonds notes, which means leaders must model the behavior, celebrate team success and coach workers on cultural behavior norms.

Employees should focus on strategic tasks instead of working around the clock to boost productivity, says Stefania Mallett, co-founder of ezCater. "Americans often use exhaustion as a yardstick for productivity, but the pile of work doesn't materially diminish whether you work until 5 p.m., 9 p.m., or midnight," Mallet says.

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