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Investor's Business Daily

| August 02, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Economic Growth Slowed In Q2

1The U.S. economy grew at an annual rate of 3% in Q1, below Q1's 4.5% rate (revised up from 3.9%) and below the 3.7% rate analysts expected. Inflation appeared in check as the so-called chain deflator rose 3.3%, same as in Q1. Consumer spending on both durable and nondurable goods declined from Q1. More on this page

Oil Surges On Supply Worries

2Strong demand, tight supplies and continued uncertainty about Russia's Yukos oil company pushed Sept. future prices up $1.05 to $43.80 a barrel, its highest level since the futures contract began trading in '83. Russia has threatened to shut down Yukos if it fails to pay back taxes.

Two Key Indices Climbed In July

3The University of Michigan's index of consumer sentiment climbed 1.2% to 96.7 in July from the previous month, the highest level since January's 103.8. The Chicago PMI, a measure of Midwest manufacturing, rose 15% to 64.7 in July, though still fell short of the May high of 68. Economists said both indexes point to the June slowdown as being temporary. More on A1, A2

Bush, Kerry Hit Campaign Trail

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