Economic growth slowest in four years

[eppur_se_muova]

Source: CNNMoney.com

Latest reading shows just 1.3% growth, far less than forecasts, hurt by weakness in housing, business spending.

By Chris Isidore, CNNMoney.com senior writer
April 27 2007: 10:16 AM EDT

NEW YORK (CNNMoney.com) -- Economic growth sank to the slowest pace in four years in the first quarter, the government reported Friday, as the weak housing market, coupled with higher prices, took a big bite out of the world's largest economy.

While a slowdown had been expected, the reading came in far weaker than most economists' forecasts. Sluggish spending by businesses was another culprit.

"We are seeing housing affecting consumers," said Michael Strauss, chief economic for Commonfund, an asset manager serving not-for-profit clients. "We're seeing a major drag on discretionary spending."

Home sales: Worst drop in 18 years

The Commerce Department said gross domestic product grew at a 1.3 percent annual rate in the quarter, down from the 2.5 percent rate in the fourth quarter. Economists surveyed by Briefing.com had forecast GDP, the broadest measure of the economy, would slow to growth of 1.8 percent in the quarter.

Read more: http://money.cnn.com/2007/04/27/news/economy/gdp/index.htm?cnn=yes

[Parisle]

1. And yet, the stock market just set a record. Surprised?

--- If these two contradictory observations don't raise (.. and answer ) some questions about how this economy is being run,.. and for whom it is being run,.. then we're doomed. Obviously all "wealth" is being sucked up to the very top.