(Updates with details, background)
NEW YORK, May 14 (Reuters) - The amount of U.S. commercial paper outstanding fell below $1 trillion to its lowest level since mid-February, suggesting weaker corporate demand to finance payrolls and inventories, Federal Reserve data showed on Thursday.
Recent economic data showed domestic business activity has remained sluggish due to weak global demand.
U.S. seasonally adjusted commercial paper outstanding fell $24.3 billion, its biggest weekly drop in 10 weeks, to $992.4 billion in the week ended May 13.
Appetite from money market funds, which are major buyers of these ultra short-dated corporate IOUs, may have slipped on the week as their assets fell.
However, non-seasonally adjusted commercial paper outstanding, which some analysts consider a more reliable reading than the seasonally adjusted one since it has been distorted by the financial crisis, rose $800 million to $1.013 trillion.
U.S. non-seasonally adjusted foreign financial commercial paper outstanding rose $4.6 billion to $252.5 billion. (Reporting by Richard Leong; Editing by Paul Simao)