Taken together, the reports did little to alter the perception that economic growth is decelerating.

Economic growth has decelerated since last June to half its earlier pace.

Mr. Meckstroth argued, however, that manufacturing growth is just decelerating somewhat from its rapid pace in 2004 - hindered by the recent strengthening of the dollar.

Why would growth stocks be expected to excel when economic growth is decelerating?

Inevitably, this means that their growth will decelerate as they close in on high productivity countries.

But growth in gross domestic product - the broadest measure of the nation's economic health - would decelerate slightly to 2.1 percent in 1997, according to the survey.

When that inventory restocking slows, growth will decelerate, he said.

They finally became too cheap to ignore, and concerns that economic growth was decelerating strengthened the case for owning them.

"I think growth is decelerating, not falling off a cliff," Mr. McVey said.

The big concern now is that growth in earnings, while still healthy by historical standards, has been decelerating.