While the inventory data indicate a slowdown in first-quarter economic growth, economists expect a pickup in the second quarter.
While positive for GDP, the wholesale inventory number could also reflect slackening demand from retailers.
The 2% drop followed two consecutive months of increases.
Calls for the U.S. to transfer control of ICANN to an international group have been fueled by Edward Snowden's revelations of NSA spying.
Personal consumption expenditures rose 2.9% last quarter, keeping the U.S. economy's moderate recovery on track.
Orders for durable goods declined at a seasonally adjusted 0.5% in April, but excluding the transportation sector the numbers showed signs of life.
One important sector of the U.S. economy appears to have rebounded from a slow winter.
Gap between U.S. imports and exports likely means that U.S. GDP actually contracted in the first quarter.
Durable goods orders fell 1.4% in February, a significant variance from economists' median forecast of a rise of 0.2%.
Business investment and exports fueled 4.6% annualized growth in GDP, the U.S. economy's best performance since 2011.
