Horizon turns gloomier for bumpy US economy

0 Comments | AFP, August, 2006

WASHINGTON (AFP) — Instead of gliding to a smooth landing after years of sky-high growth, the US economy now looks set for a bumpy ride as the property market hits major turbulence. While most analysts do not yet anticipate a hard landing or even recession, they warn that the world's largest economy is looking a lot shakier than just a few weeks ago.

"'Home for sale' signs have edged out gasoline price billboards as the most important sign of downside risk to the economy," Lehman Brothers economist Ethan Harris said. Harris predicted that revisions to second-quarter growth data due out this week would show an improvement to 3.0 percent, in line with the Wall Street consensus, from the weak pace of 2.5 percent first given by the government. But further forward, gross domestic...