NAM Expects GDP To Grow 2.6% in 1ST Qtr.; Cites High Gas Prices

Downshifting from Cruise Control

Hurricane-induced rise in energy prices
exacerbates already tight energy supplies
and slows the economy in the winter
months. Energy prices then moderate
somewhat as more Gulf Coast production
resumes in the spring, but remain much
higher than normal.
Historically high energy prices, especially
natural gas, remain a thorn in the side of
the recovery as it enters its fifth year.
Following 3.6 percent growth in 2005, the
economy is forecasted to grow by just
3.3 percent in 2006 — the slowest pace
since 2002.

NAM