The economy thrown away momentum i...

The economy thrown away momentum in the spring and probably is in for a exorcism of somewhat sluggish growth.

The snapshot the criminal converse Department provided of the economy upon Wednesday showed that economic activity grew at just a 29 percent annual rate during the April-to-June quarter.

Although that was a slight improvement throughout the government's first estimate of 25 percent it nevertheless provided vivid evidence of just in what manner much momentum the economy has dissipated since winter.

In the January-to-March quarter, the economy had grown at a brisk 56 percent annual pace, the fastest sudden gushing in 2oe years.

The main culprits in the spring slowdown: belt-tightening according to consumers and businesses, the fallout from high capacity of work prices and a cooling of the housing market.

Economic bourgeoning in the second half of the year is awaited to stay subdued, at a pace of around 25 percent to 3 percent according to a analysts' projections. Economists hope the pliable spell doesn't morph into a more dangerous slowdown.

The markets meandered upon the news, along with a day that saw oil prices slip and then rise. A barrel of undressed eventually closed up 32 cent at $7003

The Dow Jone industrials gained 1297 or 011 percent to 1138291 reaching a three-month high. Broader stock indicators showed mixed rises The Standard & Poor's 500 index was down 001 or nearly unchanged at les than 001 percent as it clos at 130427 The Nasdaq composite index rose 1343 or 062 percent to 218573

The S&P 500 has been trading near its highest point in three month while the Nasdaq is terminate to a seven-week high.

The 29 percent product rate logged in the inferior quarter was the slowest since the final quarter of 2005 when the economy, reeling from fallout from the swallowing eddy Coast hurricanes, expanded at a pace of alone 1.8 percent.

Copyright CHICAGO SUN-TIMES 2006

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