INVENTORIES DOWN

WASHINGTON - Businesses cut their inventories 0.3 percent as sales edged upward in June, the government said today. The decline in stockpiles was the fifth straight, marking the longest string since the economy emerged from the 1981-82 recession.

Analysts believe the inventory shrinkage will lead to increased production and jobs when customer demand strengthens further.

The Commerce Department said inventories held on shelves and back lots totaled a seasonally adjusted $808.9 billion, down from $811.7 billion in May.

It was the longest string of reductions since stockpiles dropped for eight months from August 1982 and through March 1983.