Bush says U.S. economy is in a slowdown

WASHINGTON (Reuters) - President George W. Bush said on Friday the U.S. economy is in a slowdown but tax rebates should help stem the slump in activity.

"It's obvious our economy is in a slowdown," Bush said in urging taxpayers to contact the federal government about their eligibility for rebates amounting to as much as $600 (300 pounds) per adult and $300 (150 pounds) per child.

"The money's going to help Americans offset the high prices we're seeing at the gas pump and the grocery store and it will also give our economy a boost to help us pull out of this economic slowdown," he added before leaving the White House for a trip to Connecticut.

Bush says the U.S. economy is experiencing a slowdown, but not a recession, despite sharp increases in energy and food prices and a continuing crisis in the housing industry.

(Reporting by David Morgan, editing by Lori Santos)