Recession clouds darken 2007 outlook
Most economists expect slower growth and no downturn, but some recent signals are flashing red.
By Chris Isidore, CNNMoney.com
December 26 2006: 3:26 PM EST
NEW YORK (CNNMoney.com) — The economy is stumbling at the end of 2006, setting off alarm bells that growth might not just slow next year but that the nation could tumble into a recession.
The recent trend of slower growth is not expected to be reversed any time soon. Home building and the broader real estate market are both already in a recession by most accounts and are expected to stay there well into next year. Manufacturing could soon follow, according to some recent readings.
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While most economists are still expecting the economy to avoid a full-blown downturn next year, several say the odds of a recession have risen. Even the more optimistic analysts are looking for a slowdown in growth in gross domestic product (GDP), the broadest measure of the economy, to between 2 and 3 percent next year, from 3 percent or better this year.
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