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U.S. Growth to Throttle Back by Mid-Year

A gauge of future U.S. economic growth slipped further in the latest week as its yearly growth rate continued to dip from record highs, suggesting an expected pull-back in growth mid-year, a research group said on Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index for the week ended Feb 5 fell slightly to 130.0 from 130.9 the prior week.

It was the lowest reading since Nov. 27, when it read 129.8.

The index's annualized growth rate declined for the ninth straight week to 19.7 percent, from 21.5 percent the previous week.

The yearly growth rate has fallen from its October record high to its lowest reading since a year and a half ago, though such moves are expected in a recovery, according to the group.

"While the U.S. economic expansion is well set to strengthen in the near term, the current easing in WLI growth to a 25-week low suggests that growth will begin to throttle back by mid-year," said ECRI Managing Director Lakshman Achuthan.