Companies will probably not meet that estimate because the economic recovery has slowed, Mr. Hill said.

Interest rates will rise, and the recovery will slow.

Japan's economic recovery slowed during the summer, with third-quarter growth dropping to 0.7 percent from 1 percent in the spring, figures released early today showed.

The leading indicators climbed six-tenths of 1 percent in May, but the sense that the recovery was slowing was not dispelled.

Policy makers will consider whether their benchmark short-term interest rate should be lowered because of recent signs that the recovery from last year's recession is slowing.

But the challenges are mounting as the recovery slows.

The latest numbers underscored fears that the economic recovery has slowed to a standstill.

Corporate investment has been one driver of the economy and the slowdown in the third quarter suggests that the recovery is slowing.

But the report found weightier evidence that the city's economic recovery had slowed down, if not come to a halt.

Mr. Lavagna acknowledged that there had been signs in recent weeks that the recovery was slowing.