The Economy: No Longer Boiling But Still Hot

After five years and four months of exuberant expansion that has brought the U.S. close to inflation, the economy is showing signs of cooling off. The pace of business is still accelerating, but the rate is slower for three main rea sons: tight money, shrinkage in the federal deficit and a recent dip in consumer spending in some fields.

The change may prove temporary, but it pleases businessmen, bankers and Government leaders. Says Chairman Gardner Ackley of the White House Council of Economic Advisers: "This slowdown is expected—and welcome."

Precarious Heights. Auto sales...