US Economy Will Grow at the Slowest Pace in 5 Years in 2007
In 2006, the GDP rose by 3.4%. NABE's November forecast put GDP growth this year at 2.5%.
- Housing construction will plunge by 14.9% this year, nearly three times bigger than the 5.5% fall in residential construction they had projected in the earlier survey. Construction spending dropped by 4.2% for all of 2006.
- Consumer spending to grow by 3.2%in 2007, the same as last year.
- Consumer prices will rise by just 1.9% this year, down from the 3.2% increase on an annual basis last year.
- GDP growth to rebound to 3% in 2008 as housing stabilizes.
- The unemployment rate will tick up modestly to 4.7% this year and 4.8% in 2008. The rate averaged 4.6% last year, the lowest in six years.
- The Fed will be content to remain on hold for the entire year.
"The forecast we are presenting is the picture of a soft landing," said Carl Tannenbaum, NABE's president and the chief economist at LaSalle Bank/ABN AMRO in Chicago.
- National Association for Business Economics: http://www.NABE.com
- Slower Economic Growth Is Predicted - AP
- US economy moving to "sustainable growth": NABE - Reuters
- US economic outlook 'improving' - BBC News
to Stay on Hold Through 2007, Business Economists Forecast -