Economy, Though Sluggish, Recovers From Weak Second Period, Survey Says
NEW YORK -- The economy is recovering from an anemic second quarter, but its performance remains sluggish.</br></br>Spurred by a surge in consumer spending, economic growth picked up to a 2.3% annual rate this quarter, according to the results of a survey of economists by The Wall Street Journal. In the previous three months, the economy barely stayed afloat, with the gross national product expanding at a meager 0.6% pace, after adjusting for inflation.</br></br>The Commerce Department's initial estimate of third-quarter economic growth isn't scheduled for release until Oct. 21. Estimates of the 15 private economists polled by the Journal are similar to the government's "flash" projections, which were discontinued this year.</br></br>Although the economy's growth was slower than most economists had expected only a few months ago, analysts generally say the Federal Reserve System isn't likely to push short-term interest rates down further just yet. Several Fed officials recently have indicated that the central bank should hold policy stable for awhile to assess the effects of its previous credit-easing moves. These officials also have underscored the Fed's determination to keep inflation under control.</br></br>Some investors lately have become jittery about a recent spurt in commodity prices, especially gold, which they fear could be a harbinger of higher inflation. The Wall Street Journal survey showed that inflation increased only slightly during the third quarter. A GNP-based inflation measure, known as the deflator, rose at an annual rate of 2.7% this quarter from 1.8% the previous period, according to the poll.