Aug. 13, 2009 -- WASHINGTON (AP) -- U.S. businesses reduced inventories for a 10th straight month in June, although total business sales posted the first increase in nearly a year.
The Commerce Department said Thursday that businesses cut stockpiles 1.1 percent in June, slightly larger than the 0.9 percent drop economists expected. The reductions have translated into sharp production cutbacks at factories, adding to the steep recession.
But in an encouraging sign for the future, the government said business sales at all levels rose 0.9 percent in June after being flat in May. It marked the first increase in total sales since July 2008.
The hope is that sales will strengthen in coming months as the economy pulls out of its steep nosedive. However, that expectation is far from certain. A separate report Thursday showed retail sales dipped 0.1 percent in July, worse than the 0.7 percent gain economists had expected.