WASHINGTON (MarketWatch) -- Inventories at U.S. businesses fell 1.0% in May, in-line with expectations, the Commerce Department said Tuesday. Economists had been expecting the nation's inventories to fall 0.9% in May, according to a survey conducted by MarketWatch. Retail inventories fell 1.6% in May, led by the biggest drop in auto inventories in almost four years. Inventories are down 8.0% on a year-on-year basis. Business sales slipped 0.1% in May. Sales are down 17.8% over the past year. The inventory-to-sales ratio, an indication of demand, fell to 1.42 in May from 1.43 in April. Economists expect the decline in inventories to moderate in the second half, thereby boosting GDP growth.
