Economy will slow, but it's still on go. (interview with John Connaughton)(Interview)

John Connaughton, who has master's and doctorate degrees from Northeastern University, has taught economics at UNC Charlotte since 1978. Since 1981, his quarterly forecast has predicted how the Tar Heel economy will fare over the next 18 months. He explains why the state is cooling down.

BNC: Does slower growth in the second half of 1997 and in 1998 spell trouble?

I don't read it that way. 1997 is our sixth year of economic growth. There's no longer any easy room to expand. You've used up the excess capacity of the economy. We're talking about slowing to 2.5%. That's not bad in an environment where unemployment is 3.5% and inflation is 2%, 2.5%.

BNC: Can the economy continue to grow? …