Recession signals in the world's largest economy are flashingred again.

Growth in the second quarter slowed to a pace that has typicallybeen followed by a contraction within a year. Household spendingfell in June for the third straight month; never in the past fivedecades has this happened outside of a slump. The Standard &Poor's 500 Index plunged 16.8 percent in 11 days, performancethat's occurred only twice since at least 1970 without indicating adownturn.

“With so many red flags, the chances of a recession are rising,”said Jonathan Basile, a senior economist at Credit Suisse in NewYork. “A lot of the economic indicators are teetering. We've gonevery quickly from a slowdown scare to a recession scare.”