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Economy Slumps to 4-Year Low

Weak home sales, high oil prices drive slowdown

By J. Kelman, Newser User

Posted Apr 27, 2007 11:11 AM CDT

(Newser) – The country's economic growth has dwindled to its lowest rate in four years, with the housing slowdown, high energy prices, and a looming trade deficit driving lower-than-expected numbers released today. The economy grew 1.3% in the first quarter of 2007, down from 2.5% in the last three months of 2006, and below the rate of inflation.

In Commerce Department figures released today, one bright spot was consumer spending, which continued to look solid. Housing statistics were particularly worrisome, but monetary policymakers' hands may be tied. "Given the Fed's focus on inflation right now, they're not in a position to stimulate growth," senior market economist Kevin Logan of Dresdner Kleinwort said.

Brick layers build a stairway and facade on a new home (Getty Images)

Federal Reserve Chairman Ben Bernanke (Getty Images)

A new home under construction is pictured 30 March 2007 (Getty Images)

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Economy Slumps to 4-Year Low

Weak home sales, high oil prices drive slowdown

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inflation • economic growth • Federal Reserve • United States • money • trade deficit • US economy • Department of Commerce

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More Newser Stories

Inflation Eases, Trade Deficit Narrows

New data is mostly positive, and unlikely to influence interest rates

Jobless Rate Rises While GDP Rebounds

Economic growth balances looming threat of inflation

Bernanke: US Must Save More, Asia Spend More

Fed chief warns global imbalances could trigger new meltdown

Wait on Rate Hikes Until Crisis Eases

Fed should ignore critics, hold its ground until markets rebound

Oil Drops; Stocks Follow

Gray day on Street ahead of Fed's policy meeting

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Economy Slumps to 4-Year Low

Weak home sales, high oil prices drive slowdown

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OTHER STORIES ON OUR RADAR

inflation • economic growth • Federal Reserve • United States • money • trade deficit • US economy • Department of Commerce

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Inflation Eases, Trade Deficit Narrows

New data is mostly positive, and unlikely to influence interest rates

Jobless Rate Rises While GDP Rebounds

Economic growth balances looming threat of inflation

Bernanke: US Must Save More, Asia Spend More

Fed chief warns global imbalances could trigger new meltdown

Wait on Rate Hikes Until Crisis Eases

Fed should ignore critics, hold its ground until markets rebound

Oil Drops; Stocks Follow

Gray day on Street ahead of Fed's policy meeting

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?