The relatively strong recovery in general economic activity from the second quarter of 1993 seemed to have lost much of its vigour from the second half of 1995. Although it is still too early to claim that the recovery has run its course and that the economy has entered, or is about to enter, a downward phase of the business cycle, there is sufficient evidence available to support the view that the recovery has lost some of its earlier momentum. This is confirmed by the downward trend in the coincident composite index of business cycle indicators from June 1995 and the slight downward, though fluctuating, movement in the leading indicator of business activity from the beginning of 1995.The quarter-to-quarter growth in the real value added by the non-primary sectors of the economy also reached a peak in the second quarter of 1995 and began to subside progressively over the ensuing four quarters. It nevertheless still seems as if aggregate output growth exceeded its trend rate by some 0,5 percentage points in 1995. Growth at a rate persistently higher than the trend rate will usually exert pressure on productive resources and often warrants some pause in the acceleration in economic growth to make new room for sustained non-inflationary increases in overall real output.