SLOW GROWTH FOR ECONOMY IN Q4

Gross domestic product (GDP), the total value of all goods and services output inside of the U.S. and a favorite macroeconomic measure of national economic health, grew at 0.6% in the fourth quarter of 2007. Most economists and analysts had predicted growth of over 1%. For reference, the target growth rate in the U.S. is 3% or higher and figures in that range generally indicate a reasonably healthy economy.

From Reuters via The New York Times:

Gross domestic product, which measures total goods and services output within U.S. borders, edged up at a weaker-than-expected 0.6 percent annual rate in the fourth quarter and for the full year advanced only 2.2 percent - the slowest growth in annual GDP since 1.6 percent in 2002.

Analysts surveyed by Reuters had forecast that fourth-quarter GDP would grow at a 1.2 percent rate. The lackluster fourth quarter performance followed a booming third quarter when GDP surged at a 4.9 percent rate and is likely to fuel fears the economy is at risk of tumbling into recession in 2008.

Spending on new-home building plunged 23.9 percent in the fourth quarter, the biggest quarterly drop in 26 years, after falling 20.5 percent in the third quarter. Over the course of the full year, residential spending fell 16.9 percent, the worst annual performance since 1982.