  We demonstrate that creation of dark-matter particles at a constant rate
implies the existence of a cosmological term that decays linearly with the
Hubble rate. We discuss the cosmological model that arises in this context and
test it against observations of the first acoustic peak in the cosmic microwave
background (CMB) anisotropy spectrum, the Hubble diagram for supernovas of type
Ia (SNIa), the distance scale of baryonic acoustic oscillations (BAO) and the
distribution of large scale structures (LSS). We show that a good concordance
is obtained, albeit with a higher value of the present matter abundance than in
the \Lambda CDM model. We also comment on general features of the CMB
anisotropy spectrum and on the cosmic coincidence problem.
