NEW YORK, Jan. 28 (UPI) -- A slowdown in spending at the end of 2005 has economists waiting to see what 2006 will bring amid a slowing housing boom and high oil prices.
The economy rose 1.1 percent in the last quarter of last year, below the 2.5 to 3 percent forecasted, The New York Times reports.
Motor vehicle purchases flattened as did business investment and military spending, while imports continued to grow.
David Kelly, senior economic adviser at Putnam Investments in Boston, said this should be a cue for the Federal Reserve to stop its 18-month trend of raising interest rates.
It's now at 4.25 percent and may get to 4.75 as the Reserve tries to stem the economy from growing to fast.
A strong sellers market in housing has been expected to burst too.
Chief economist at ITG, Robert Barbera, blamed the slackened consumer spending on the high interest rates and record-breaking oil prices.
