GDP view cut following amid housing data
A 22.5 percent slump in housing starts during February has cut short economists’ expectations of first-quarter economic growth, MarketWatch reported. Analysts at the Royal Bank of Scotland Group plc cut their forecast for an increase in gross domestic product in 2011 to 2.6 percent from 2.8 percent. Analysts said residential investment represents just 2.5 percent of the GDP and that even big changes in assumed growth rates for that sector don’t have a huge impact.
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