THE ECONOMY

Inventories Fall in May: Business inventories fell slightly in May while sales rose for a fourth straight month, a situation analysts said could produce a stronger economy and more jobs in the second half of 1996. A 0.1% dip brought inventory totals to a seasonally adjusted $983.3 billion from $984.5 billion in April, the Commerce Department reported. It was the second decline this year. The report also said business sales grew 0.7% to a seasonally adjusted $717.4 billion, from $712.3 billion a month earlier. Because of an overaccumulation early in 1995, businesses cut back on stockpiles late in the year, which resulted in a drag on the economy. Now, analysts said, companies are moving from a neutral to a positive inventory position in anticipation of continued demand. In fact, an analyst said, the Federal Reserve Board is likely to report today a 0.4% rise in industrial production for June.