February 23, 2006
The preliminary estimate for the nation's economic growth rate in the fourth quarter of 2005 was only 1 percent, and that's far less than in the rest of the year. But Dr. Mike Walden says most economists don't think that signals bad news for 2006.
"We think there are some special factors at the end of 2006 that really made for lower growth," says Walden, an economist with the North Carolina Cooperative Extension Service at N.C. State University.
"We had a big drop off, for example, in auto sales. We had a drop actually in federal spending," he says. "And we expect both of those as well as other factors to rebound in 2006.
"In fact in January we already saw high levels of auto sales," he adds. "And in fact there are some economists who are talking about very, very rapid growth in the early part of 2006, primarily due to much greater spending on Katrina cleanup."
Posted by deeshore at February 23, 2006 08:00 AM