BUSINESS: A Picture of Moderate Growth Data Indicate Economic Gains Are Sustainable
Recent economic statistics paint a picture of an economy growing in a moderate, sustainable fashionÛÓa picture that should calm fears in financial markets that fast growth is about to trigger a new burst of inflation, according to analysts.</br></br>Worries that the economy might overheat were a major factor in driving up long-term interest rates this year as investors sought higher returns to protect themselves against a possible rise in inflation.</br></br>If those fears are allayed, long-term rates should retrace part of their upward track, analysts said.</br></br>Earlier, analysts had predicted that growth would jump to a 4.5 percent or 5 percent annual rate in the three months from April through June, with some economists using numbers as high as 6 percent.</br></br>But with the quarter half over, the flow of statistics on initial claims for jobless benefits, retail sales, automobile production, housing starts and new orders for long-lasting goods all suggest that the economy is expanding at a solid but more moderate pace of 3.5 percent to 4 percent, analysts said.