Some private economists said the figures, which were better than most expected, meant that moderate expansion had replaced weak recovery.

Members agreed that "current information on business conditions pointed on balance to relatively moderate but sustained economic expansion."

"But if you were anticipating a continuing moderate economic expansion, these numbers were ho-hum."

Many experts still expect a moderate expansion in the economy next year, and some pointed to statistical quirks that exaggerated the current weakness.

From this time there has been moderate expansion of industry, residences, and local government.

"In the next two to three years, the economy will continued to have a moderate expansion with modest inflation," she said.

The Administration has repeatedly emphasized that this will be a moderate, cyclical expansion.

Some economists said the figures meant that moderate expansion had replaced weak recovery.

Mr. Greenspan said that without exception economic reports confirm a "moderate" economic expansion.

He adds that recent data has indicated a slowdown in economic growth over recent months, though continued "moderate expansion" is expected in the near future.