By Rex Nutting
WASHINGTON (MarketWatch) -- U.S. businesses continued to slash their inventories in July to bring stocks more in line with sales. Inventories fell 1% in July after a 1.4% decline in June, the Commerce Department reported. Total business sales rose 0.1% in July after a 1.1% gain in June. The inventory-to-sales ratio dropped to 1.36 in July from 1.38 in June. The ratio peaked at 1.46 in December; the ratio was at 1.27 a year ago. Retailers reduced their inventories by 1% in July, including a 2.1% drop in inventories of auto dealers.
