Covering the Economy: January 27 GDP Release: Greg Ip Saturday Morning WSJ Story

Greg Ip's Saturday morning story for the Wall Street Journal:

WSJ.com - Economic Growth Slowed to 1.1% In Fourth Quarter : GDP Is Likely to Rebound, But Many Say Expansion Will Moderate This Year By GREG IP Staff Reporter of THE WALL STREET JOURNAL January 28, 2006; Page A1: Economic growth slowed to its most sluggish pace in three years at the end of last year as consumers and businesses applied the brakes to spending. While a rebound is likely in the current quarter, the expansion after two brisk years appears to be moderating as higher energy prices and interest rates begin to bite.

The nation's gross domestic product, or total output of goods and services, grew at just a 1.1% annual rate in the fourth quarter, the Commerce Department said Friday. That's the slowest rate since the fourth quarter of 2002 and well below the average 4.1% growth of the prior 10 quarters. "There is a slight tone change in the economy, though nowhere nearly as dramatic as the headline suggests," said Nancy Lazar, economist at ISI Group, a New York research and brokerage firm. "Growth may be moving into a slower stage."