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NewsFlash: October 27, 2006

Housing weakness slows economy

The weak housing sector is a major factor is today’s lackluster GDP growth rate of 1.6% this quarter, according to analysis by EPI’s Josh Bivens.  This is the slowest growth rate since the first quarter of 2003.  As illustrated in today’s  GDP Picture, the housing sector’s growth rate and its share of total GDP have been in recent sharp decline.  “This report describes a weak economy,” said Bivens.  “The argument seems strong for the Federal Reserve to begin cutting interest rates in its next meeting.”

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