BUSINESS MEMO: ECONOMY GROWING

The U.S. economy is set to grow well into the second half of the year, say reports released last week, while the government provided fresh evidence in a separate report that rising interest rates have done little to dissuade new home buyers.

Analysts said the figures pointed to further interest rate increases by inflation fighters at the Federal Reserve.

The Index of Leading Economic Indicators, which is designed to predict economic activity three to six months ahead, rose 0.1 percent in March, indicating continued growth, but at a lower pace than in the last six months.

Meanwhile, the Commerce Department said new home sales rose in March to their second-highest level on record, and the National Association of Purchasing Management said the manufacturing industry will continue to prosper through the year.