Bush: 'Economy has slowed'

President Bush said Friday that "it's clear our economy has slowed," hours after a government report showed a decline in payrolls for the second straight month.

But he said the long-term outlook is good, with a stimulus package enacted last month by Congress providing support for the economy.

"I know this is a difficult time for our economy," the president said. "But we recognized the problem early and we provided the economy with a booster shot."

Bush said the effects of the stimulus package are "just starting to kick in" and that the plan will "put money into the hands of American workers and businesses."

Earlier in the day, Bush's chief economic adviser Edward Lazear said that the nation's economy could contract in the current quarter. But he added that, "we expect that the economy will get stronger, primarily in the third quarter."

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On Friday, President Bush finally explained a piece of news to America that has been clear for a number of months now, that the economy is performing poorly. However, Bush also said that he believes that the economy is in good shape over the long term due to the stimulus package that was enacted last month. Because we wiill not see the effects of the stimulus package for a couple months the economy will probably contract this quarter, but by the time the third quarter rolls around, the economy is expected to get stronger. The statements come after the Labor Department said employers made their deepest cut in staffing in almost five years during February, showing concerns that a recession is coming. It doesn't help the matter that oil prices are at record highs and that stocks have fallen to their lowest value in 18 months.

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