BUSINESS BRIEFING / THE ECONOMY

Businesses slashed inventories at the wholesale level for a fifth straight month in January, the longest stretch since the last recession in 2001 and a warning signal that companies are likely to keep cutting production as they cope with the deepening downturn.

The Commerce Department said wholesale inventories fell 0.7% in January, slightly less than the 1% fall that economists had expected. It followed a 1.5% drop in December that was initially reported as a 1.4% decline.

Sales at the wholesale level dropped 2.9% in January, the seventh consecutive decline.