WASHINGTON. Feb 1 The US economic expansion enters its ninth year today, a recordsetting performance that shows endln^ soon, says

Analysts say the unprecedented boom Is the result of productivity gains from Information technology, vigilance on inflation by the Federal Reserve and a key decision by the Clinton administration to focus on reducing the federal budget deficit.

Powered by robust consumer spending. US gross domestic product in the final three months of 1999 surged ahead at a 5.8 per cent clip, the fastest growing quarter since the same period of 1998.

For the year, the economy expanded four per cent, just shy 19%^ 3 Per cenl recorded ln

Unemployment Is at a 30-year tow of 4. J per cent and, ac-(ording to Wall Street analysts, could fall further to four per cent when new job creation flg-•- ure*arc released Friday.

But what has confounded the experts and challenged traditional analysis is the persistent absence of serious upward pressure on prices. Despite the torrid pace of growth. Inflation is currently under three per cent. On Wall Street, the Dow Jones Industrial Average of blue-chip stocks has more than quadrupled since 1990.

Attempting to explain the durability of the expansion, economists tend to point first of all to a decision made by President Bill Clinton in 1993. his first year In office, to make deficit reduction the centerpiece of his economic programme.

The federal deficit in 1992 came to 290 billion dollars and was projected to swell to more than 400 billion dollars In 2000. a trend that threatened to absorb huge amounts of the national savings and thereby deprive the private sector of capital.

Big deficits would also drive up Interest rates, making homes, cars and college education more expensive as the government entered capital markets to borrow money.

Clinton came to power as an activist Democrat, determined to engage the federal government in the national economy after years of Republican re-, Hance on market forces.

1 But while Clinton may have been more comfortable with government-backed growth policies, he heeded the counsel of fed chairman Alan Greenspan and his economic advisers that reducing — and perhaps eliminating — the budget deficit was critical.

"Clinton bought the story,” said David Orr, First Union chief economist and a 35-year observer of national economic trends.

"I would give him very high marks If not for setting the right course than at least lor being persuaded to follow the right course.