US not in recession: Bush

NEW ORLEANS: With pocketbook fears shaping the 2008 US White House race, President George W Bush bluntly declared on Tuesday that the battered US economy was not in a recession but "in a slowdown."

"We're not in a recession," Bush said as he met here Canadian Prime Minister Stephen Harper and Mexican President Felipe Calderon. "But there's no question we're in a slowdown. And, yes, people are concerned about it, obviously."

"Of all the three of us standing up here, I'm probably the most concerned about the slowdown. After all, it's affecting the people who I have the honour of representing," said the US president.

Bush's comments came amid new economic data showing a drop in home sales, more punishment for an ailing US housing market already coping with a mortgage crisis; soaring gasoline prices; and inflation fears.

The three leading candidates in the November presidential race, Democratic Senators Hillary Clinton and Barack Obama and their Republican colleague John McCain have been dueling over what to do to help Americans weather the storm.

Bush has repeatedly urged lawmakers to await the results of an initial economic stimulus measure, and resisted calls for a second pump-priming package.

"I think this is going to have a positive effect on the economy. Experts say it's going to have a positive effect on the economy. And so, we'll see what happens there," said the US president.