U.S. is Sliding Into Recession
The growth of U.S. Gross Domestic Product slowed to 1.6 % for the 3rd quarter of 2006, its smallest advance in more than 3 years. Economists had been expecting growth of 2.1 %. The slow down in the housing market is the primary factor effecting U.S. economic growth. Sales of existing homes had increased in September 2006, however the prices paid for these homes was down dramatically. Overall for the quarter spending on new housing is down by 17.4 $. With inflation an ever-present concern for the U.S. this latest slowdown may be signaling that the country is sliding into recession.