In February 2000, the U.S. marked its 107th consecutive month of economic growth, breaking the previous 106-month record of postwar expansion from February 1961-December 1969. The growth of the Internet has played an instrumental role in driving the economy.

While the glee of newfound prosperity in these good times still grips many, others are turning a concerned eye towards indicators showing that the party might be over. Several dot coms that started with a bang have recently closed shop with a whimper. Inflation is slowly creeping upwards and productivity is down. While Internet stocks have taken a beating in recent months, overall the economy is growing more reliant upon the technology, and many believe this trend will help sustain the good times.

Under the watchful eye of Federal Reserve Chairman Alan Greenspan, inflation has largely been kept in check. But Greenspan's trepidation about the new economy, particularly the stock market, makes many nervous. In May, the Fed raised short-term interest rates by half a point, to 6.5 percent, to combat inflation.

On One Hand...

A downturn in the business cycle is inevitable - what goes up must come down. Recent signs point to a coming cooling off of the overheated economy. Signs of inflation are everywhere, particularly reflected in rising consumer prices, according to the most recent Consumer Price Index (CPI). In March alone, the CPI rose 3.7 percent. Productivity growth in recent months has also slowed, another sign of a coming downturn.

Driving the overheated economy is an overvalued stock market - both the Dow Jones and the NASDAQ have taken hard hits recently, NASDAQ's losses thus far have wiped out all gains made in 1999.

On the Other Hand...

Contrary to popular fears, the economy is strong and shows no signs of overheating anytime soon. The Federal Reserve is carefully looking at interest rates and inflation and adjusting accordingly to avoid setting off a recession. While consumer prices have risen in recent, much of that gain can be attributed to volatile indices like food and energy costs, as illustrated by soaring gas and heating costs this past winter.

• Since the 1970s, productivity has been stable at around 1 percent a year, but during the late 1990s, it jumped to above 2.5 percent.

• Personal income has risen 47 percent since 1991. At the same time, consumer spending has risen about 57 percent. The disparity between the two--paid for by borrowing or selling stocks--totals almost $400 billion annually.

• Economists expected growth in gross domestic product between 1993 and 1999 to average 2.7 percent - it averaged about 3.4 percent. The same group expected inflation in 1999 to be 3.4 percent; it is now about 2 percent.

• Margin debt - investors borrowing to buy stocks - jumped 62 percent in 1999 to $229 billion.

• In 1995 one Internet company was a publicly traded company with a market capitalization of $1 billion: America Online. Today more than 250 Internet companies are public with a combined market capitalization of $1 trillion.

Federal Reserve, Bureau of Labor Statistics, National Bureau of Economic Research, Business Week