This is not very good.
I suspect the slowdown is due to rising energy prices and higher interest rates.
Consumer spending fell back to a 1.1 percent growth rate matching the overall GDP number — the drop appears to be driven by a 17.5 percent annual rate decline in durable goods.
Brakes on the economy? GDP slows to 1.1% growth rate in 4Q – Jan. 27, 2006
GDP posts smallest gain in 3 years
Far less growth than forecasts in the fourth quarter, as economy manages only 1.1% annual rate gain.
By Chris Isidore, CNNMoney.com senior writer
January 27, 2006: 11:39 AM EST
NEW YORK (CNNMoney.com) – The nation’s economy grew at its slowest pace in three years in the fourth quarter, according to the government’s gross domestic product report Friday, which came in far weaker than economists’ forecasts.
The broad measure of the nation’s economic activity showed an annual growth rate of 1.1 percent in the fourth quarter, down from the 4.1 percent growth rate in the final reading of third-quarter growth. Economists surveyed by Briefing.com had forecast a 2.8 percent growth rate in the fourth quarter.