UPDATE 7-Oil slips on US GDP, but PMI, ECRI data supports

                                
 * US Q2 GDP expands at 2.4 pct annual rate, slows from Q1
                                
 * Concern about slowing growth weighs on oil, equities
                                
 * Coming up: CFTC positions report at 3:30 p.m. EDT
 (Recasts, updates prices, market activity, changes byline and dateline
from previous CAPE TOWN)
                                
 By Robert Gibbons
                                
 NEW YORK, July 30 (Reuters) - U.S. crude prices slipped on Friday,
pressured by data showing economic growth in the United States slowed in
the second quarter and gloomy consumer sentiment.
                                
 But a report of positive business activity in the U.S. Midwest and
another showing a better leading indicator index helped pull oil prices off
their lows.
                                
 U.S. crude for September <CLc1> delivery fell 20 cents to $78.16 a
barrel at 1 p.m. EDT (1700 GMT), having traded from $76.83 to $78.45.
                                
 ICE Brent edged down 121 cents to $77.47 a barrel, having traded as low
as $76.20.
                                
 U.S. economic growth slowed in the second quarter and the pace of
consumer spending eased, fueling concerns about the recovery in the rest of
2010. [ID:nN29111411]
                                
 Gross domestic product expanded at a 2.4 percent annual rate, just
under expectations, after a revised 3.7 percent growth pace in the first
quarter.
                                
 "We were already down following the equities market that was already
low even before the GDP report came out," said Addison Armstrong, analyst
at Tradition Energy in Stamford, Connecticut.
                                
 "The market has good technical resistance, currently below $79. Support
is down to $76.50...."
                                
 Consumer sentiment dropped in July to a nine-month low, according to
Thomson Reuters/University of Michigan's Surveys of Consumers, adding to
the economic concern. [ID:nN30173680]
                                
 But another report showed business activity in the U.S. Midwest region
expanded more than expected this month on strong orders. The Institute for
Supply Management-Chicago business barometer rose to 62.3 from 59.1 in
June. [ID:nN30265688]
                                
 Also seen helping ease the gloom, the Weekly Leading Index, a measure
of future U.S. economic growth, rose in the latest week, though its
annualized growth rate fell, the The Economic Cycle Research Institute said
on Friday. [ID:nNLLUIE6AK]
                                
 The mixed data and stronger earnings helped Wall Street bounce off its
lows. [.N] While the euro <EUR=> weakened against the dollar, the greenback
hit multimonth lows against the Japanese yen and the dollar index <.DXY>
was lower.
                                
 A weak dollar often supports prices for dollar-denominated oil, making
it cheaper for buyers using other currencies and lowering the value of the
dollars producers receive.
                                
 Another supportive factor on Friday was the presence of two tropical
weather systems in the Atlantic Basin. They still were being given low
chances of strengthening into tropical depressions over the next 48 hours
by the U.S. National Hurricane Center on Friday. [ID:nN30158416]
                                
 "There is always a reluctance to be too short and then come back after
the weekend and there is a real storm threat," said Phil Flynn, analyst at
PFGBest Research in Chicago.
                                
 DEMAND CONCERNS AND RISING INVENTORIES
                                
 Signs of tepid economic recovery and oil demand growth, along with the
hefty inventories have helped keep oil prices in check as they recovered
from a low under $65 in late May.
                                
 Japanese oil product demand fell 4.7 percent in June from a year
earlier, declining for a second straight month. [ID:nTOE66T05D] Industrial
output in Japan unexpectedly fell in June and manufacturers expect further
declines in coming months. [ID:nTOE66S012]
                                
 U.S. oil demand in May was revised down by 4.21 percent, the U.S.
Energy Information Administration said on Thursday. [ID:nN29270331] On
Wednesday, the EIA reported a sharp build of in crude oil stockpiles last
week, more than 7 million barrels, along with rising stocks of gasoline and
distillates. [EIA/S]
 (Additional reporting by Selam Gebrekidan, Alex Lawler and
Alejandro Barbajosa; Editing by John Picinich)