"It's directly related to a large pileup of unsold goods."
Thanks to all the consumption, companies have run down their inventories of unsold goods to unusually low levels.
The nation's stores and warehouses filled up with an extra $50 billion in unsold goods during the quarter.
It recently added a format called "garage sale," where prices of unsold goods go down every hour.
The buildup of unsold goods reported on Wednesday, most analysts say, is nothing to worry about.
It is not unusual for companies to write off the value of unsold goods once they are viewed as obsolete.
Cisco has now built up a huge inventory of unsold goods.
A higher figure had been expected, but the figure was kept down by unsold goods and lower Federal spending.
This leads to lower prices and/or unsold goods along with the possibility of unemployment.
Business sales fell 0.3 percent in April while inventories of unsold goods were rising.