Bush insists US not in recession

The US economy is in a slowdown but not headed into a recession, President George W Bush said after new data showed slow US economic growth and a bigger jump in unemployment claims than expected.

Mr Bush also said he did not think another economic stimulus package was necessary at the moment, adding 'why don't we let stimulus package one have a chance to kick in.'

'There is no question the economy has slowed down,' Mr Bush said. 'I don't think we're headed into a recession, but there is no question we are in a slowdown.'

'And that's why we acted, and acted strongly, with over $150bn worth of pro-growth economic incentives, mainly money going into the hands of our consumers.'

New economic data shows the slender pace of US growth is unrevised in the fourth quarter and new jobless claims jumped sharply last week, reinforcing a fragile outlook that some fear spells recession.

The US dollar has fallen to a record low against the euro on fears that the US economy is heading for a recession.

Mr Bush sought to reassure international financial markets that the administration stands by a strong currency.

Wiretapping

Mr Bush today also urged lawmakers to pass anti-terrorism legislation restoring legal immunity to telecoms companies aiding federal efforts to eavesdrop on email and phone traffic between the United States and other countries.

Mr Bush made his plea on behalf of a recently-expired provision of the Foreign Intelligence Surveillance Act.

Lawmakers, said should act immediately on 'a very urgent priority, and that is to pass legislation our intelligence officials need to quickly and effectively monitor terrorist communications,' he said.

Mr Bush added, 'At issue is a dispute over whether telecommunications companies should be subjected to class-action lawsuits because they are believed to have helped defend America after the attacks of 9/11.'