Economy to Grow More Slowly in 2006, Journal Reports

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ncreased business spending in 2006 is likely to lead to a fifth consecutive year of economic expansion, though a softening housing market may cool the overall pace of growth, the Wall Street Journal reported Tuesday.

Economists surveyed by the paper said that the U.S. gross domestic product will grow at a 3.5% rate in the first half of 2006 and 3.1% in the second half of the year, the paper said in a front-page story.

Some economists cited continuing high energy prices as the biggest potential threat to the economy, the Journal reported.

The GDP grew at a 4.1% annual rate in the third quarter, the last period reported by the government, the Commerce Department reported in late December.

ver the past five years, a booming real estate market has supported the economy by providing consumers with extra cash to buy goods, but as home sales slow and the number of unsold homes rises, those prices will rise more gradually or even decline, the Journal said.