Freddie Mac sees strong growth in '06

MCLEAN, Va., Feb. 8 (UPI) -- Mortgage lender Freddie Mac says the U.S. economy will grow sharply this year.

"Economic growth should snap back strongly in the first half of 2006 and reveal growth above 4 percent, at an annual rate," the company said Wednesday in a statement.

As causes of continued growth, Freddie Mac listed four causes: Higher government spending, especially for national defense and hurricane reconstruction; strong near-term capital spending; a pickup in net exports; and a rebound in consumption spending.

Also, the group said "because monetary policy was still 'accommodative' during the latter part of 2005, economic growth should be supported through the first half of this year."