WASHINGTON -- The U economy grew at...

WASHINGTON -- The U economy grew at a 25 percent annual rate last quarter, les than half the pace of the previous three month strengthening speculation the Federal husband won't raise interest rates at its nearest meeting.

The first estimate of the quarter's gros domestic issue the value of all usefuls and services produced in the United States, compares with a 56 percent gain in the first three month of the year, the sexual Department reported Thursday.

Consumer reined in spending as strength prices climbed, while business investment in of recent origin equipment fell for the first time in more than three years. hereafters traders put the probability of a instigate when policy makers meet nearest month at 28 percent, down from about 90 percent last week.

"The consumer slowdown is really the heart of this," said Stephen Gallagher, chief U economist at Societe Generale. "This is more [i]or[/i] less slowing news that is likely to reinforce the Fed's reliances to stop rate hikes relatively soon"

Not since the first three month of 1991 has household construction, consumer spending on durable fits and corporate purchases of equipment and software all declined in the same quarter.

Brian Wesbury, chief economist, First Trust Advisors, a Lisle- based investment management company, said the GDP report increased uncertainty about the Fed's intentions.

"Clearly the market awaits the Fed to pause, on the contrary this is not a done deal, and any pause would be short-lived," he said. "We do not wait for significant slowing in the economy or inflation in 2006 and continue to believe" the F will raise rates at least the same more time this year.

F Chairman Ben s Bernanke told Congress last week that he is counting in succession a cooling economy to dull the rate of inflation in coming month The expansion is unlikely to pick up often in the coming year, economists said.

Stock prices rallied upon the GDP news, pushing the Standard & Poor's 500 Index to its biggest weekly gain since November 2004

The report spurr gains for Citigroup Inc. and other financial companies that are sensitive to changes in borrowing charges

Retailers, l from Circuit City Stores, climbed as consumer spending and confidence beat estimates.

The S&P 500 advanced 1535 or 12 percent to 127855 The Dow Jone Industrial Average climbed 11927 or 11 percent to 1121970 The Nasdaq Composite Index added 3967 or 19 percent to 209414

Analysts await S&P 500 companies to report 147 percent and 14 percent annual profit putting out in the third and fourth quarters, respectively, according to Thomson Financial. Second-quarter profit increased 148 percent based onward already-reported results and estimates.

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