Growth May Slow in 2006 as Market for Housing Cools

The Wall Street Journal is reporting today that 56 economists surveyed by the newspaper are forecasting both good and not-so-good news in 2006. The good news is that strong spending by businesses should power the economy to a fifth year of expansion. The bad news is that a softening housing market is likely to slow the overall pace of growth. The consensus forecast of the economists is that the nation's gross domestic product will grow at an annual rate of 3.5 percent in the first half of 2006 and 3.1 percent in the second half. While these rates are respectable, they are lower than the 4.1 percent average of the past couple years.