The Dow Jones industrial average slipped yesterday, but most other stock measures set new highs as interest rates hit another 17-month low in the bond market. The Dow fell 32.28 points to 8,222.61 after trading in a narrow range for much of the day.

Bonds were boosted by a report confirming that US economic growth slowed sharply in the April-June quarter as consumers took a breather from a first-quarter spending spree that threatened spur rapid inflation.

The Commerce Department reported that the gross domestic product expanded at a moderate 2.2 per cent annual rate in the second quarter.

The economic slowdown came just in time to ease inflationary pressures such as rising wages and other production costs, analysts believe.

Advances outnumbered declines by a 3-to-2 margin on the New York Stock Exchange, with 1,745 up, 1,160 down and 525 unchanged. NYSE volume totalled 547.83 million shares.