Reply #4: US economic momentum in doubt after hurricanes

[ozymandius]

WASHINGTON (AFP) - The US economy was on a robust path ahead of the two massive hurricanes that hit the Gulf Coast, data showed, but analysts say the outlook is now murky and some are even talking about risks of recession.

The economy expanded at a 3.3 percent pace in the second quarter, the government said in its final estimate of gross domestic product (GDP) in the period that excludes the impact of Katrina and Rita.

The latest figure on the April-June quarter was unrevised from last month, and reflected a deceleration from the pace of 3.8 percent seen in the previous three months, the Commerce Department said.

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David Kotok, economist at Cumberland Advisors, has provisionally marked down his growth forecast to 2.0 percent for the fourth quarter of 2005 and first quarter of 2006, but adds "I worry that I may be too high."

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