P.M. BRIEFING : Economic Indicators Point to Sluggish Growth, Not Recession

The government’s main economic forecasting gauge was unchanged in June, the Commerce Department reported today, suggesting sluggish growth--but no recession--for the remainder of the year.

In advance of today’s report, a consensus of economists had expected a 0.2% gain in June.

The index of leading economic indicators, designed to forecast economic activity six to nine months in advance, had risen a revised 0.7% in May, not quite as strong as the 0.8% gain first reported last month.

But while the index did not advance in June, it escaped a decline. In the past, three consecutive declines have sometimes signaled a forthcoming recession.

In another economic report, the government said today that construction spending was flat in June after two consecutive monthly declines. The report pointed to further evidence of weakness in the building industry.