Many economists and Government officials have been hoping for signs of slower overall growth, out of fear that the economy may overheat.

His views contrast with many in the market, who expect the economy to overheat and produce inflation.

Worried that the American economy could overheat, it increased its central short-term interest rate from 4.75 percent, to 5 percent.

What is more, other recent indicators suggest that the economy is not overheating and the strain on capacity isn't critical.

Still, he said, the figures suggested that the economy was not overheating.

The new figures also relieve some worries that the economy was too heavily dependent on investment and could overheat.

The economy has not overheated so far, he said, because it has blown off steam through two safety valves.

Economists said that was more evidence the economy was not overheating.

Although inflation has been largely absent this year, economic strength continues to renew concerns that the economy could overheat.

Should productivity fail to continue to accelerate and demand growth persist or strengthen, the economy could overheat.