GDP Grew By 3.5% in Q4

The economy continues to plow along. After two quarters of below-trend growth, the economy grew by 3.5% (annualized) in the fourth quarter. This happened even though residential private investment (i.e., home construction) dropped by 19%, the largest decline since 1991.
Here’s GDP growth since 1997:

The drop in residential private investment took 1.2% off GDP growth. Here’s a look at home construction’s share of the economy since 1987:

Over the last four years, the economy has grown by 27.3% (not adjusted for inflation).

Posted by Eddy Elfenbein on January 31st, 2007 at 9:10 am

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