UPDATE 1-US March business inventories up 0.1 percent

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WASHINGTON, May 13 (Reuters) - U.S. business inventories rose 0.1 percent in March, lower than expected, while sales were strong during the month, a government report released on Tuesday showed.

Inventories stood at a seasonally adjusted $1.47 trillion in March, the Commerce Department said. Wall Street analysts were expecting a 0.4 percent gain after a 0.5 percent increase in February, first reported as a 0.6 percent increase.

Bracing for a cutback in consumer spending, retailers reduced stockpiles by 0.5 percent, the biggest decrease in a year.

The meager pace of inventory building during March could help subtract from economic output during the first three months of this year. The government first estimated an annual growth rate of just 0.6 percent during the quarter.

March business sales rose 1.0 percent after falling 1.0 percent in February, first reported as 1.1 percent decline.

The strength in March sales brought the stock-to-sales ratio - or how long it would take to empty inventories at the current pace -- to 1.27 months' worth , down from 1.28 in February.