May U.S. business inventories fall sharply

U.S. businesses continue to reduce excess inventory, amid weak demand.

Business inventories fell 1.0 percent in June, the U.S. Commerce Department announced Tuesday, led by a plunge in auto inventories.

Economists surveyed by Bloomberg News had expected inventories to decline 0.8 percent in June. Inventories fell 1.1 percent in April. What's more, inventories have now fallen 8.0 percent in the past year, and have declined for nine straight months.